In the business world, restructuring has become a necessary tool for organizations to adapt and thrive. Such was the case when LinkedIn strategically reduced the size of its workforce to better align the organization with its new business goals for its FY24 plan, as well as to tackle the issues presented by declining revenue.

Yet, one study found that when firms downsize employees, they incur indirect costs in the form of decreased productivity, reduced morale, and aversion to risk among remaining employees. As these changes occur, the challenge for employers is not just to navigate the difficulties of restructuring but also to ensure that their team remains motivated and engaged amidst the fluctuations. In this article, we’ll go through some strategies and initiatives that can guide employers on how to raise morale during times of organizational transformation.

Communicate with empathy and transparency

Restructuring and downsizing are often fraught with uncertainty, anxiety, and declining employee morale, but employers can navigate these events with compassion and clarity. Debby Routt, the Chief People Officer at Marathon Health, suggests relaying consistent messaging, being as transparent as possible, and showing empathy to your impacted team members. An important part of ensuring that you maintain consistency is carefully composing a script for all of your leaders to communicate. Moreover, coach your leaders on how to deliver the message and how to respond to employee questions. For employees moving forward, a clear explanation as to the reasons for the restructuring and how it will directly impact their role is needed to build trust and focus.

Provide outplacement services

Many companies offer job search initiatives or funding to help redundant employees land a new position. Employers can also contract with an outplacement firm that provides a package of services. These outplacement services are a way to provide support to employees through unexpected changes and empower them to take the next step in their career journey. A good outplacement service will use accredited career experts to guide candidates through every step of the career change process through one-on-one coaching, personal branding, unique strategies for active placement, career development support, and more. Having outplacement services is vital for making both former and current employees feel valued by their employers.

Develop resilience through professional coaching

Professional coaching can boost employee morale by equipping individuals with skills to adapt to change, manage stress, and maintain a positive outlook. This resilience-building process empowers employees to face uncertainties with confidence, reducing anxiety and enhancing their overall sense of well-being. Jen Fisher, Deloitte’s U.S. Chief Well-being Officer, emphasizes that by taking steps to develop resilience in its employees, leaders can give much-needed stability while optimally placing their organization to flourish once the restructuring concludes.

Invest in your remaining people

Post-downsizing, companies should create strategic opportunities for remaining employees to come together to build relationships, discuss how they’re dealing with company changes, and fortify the cultural connection. As organizations become leaner, employees may be promoted or acquire more senior roles, necessitating investing in talent development. It’s crucial to demonstrate that you are committed to their long-term growth at your company by offering skill development, mentorship and sponsorship programs, and opportunities for networking.

It is essential to recognize that efforts to lift employee morale during restructuring should extend beyond mere tokens of appreciation. They should be pillars of the company’s culture, fostering a resilient workforce that can weather any storm. In the end, a restructured organization that emerges with higher morale not only ensures smoother transitions but also cultivates a loyal, inspired, and more innovative team.