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After Layoffs, How Can Employers Handle Survivor Guilt?

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We may or may not be heading for an economic downturn this year, but we certainly are seeing a slew of layoffs. The technology industry has been most heavily affected, with more than 224,000 jobs eliminated since the start of 2022. Although many small companies are affected, we’re also seeing announcements from big names like Alphabet, Amazon, Microsoft, Salesforce, and Meta.

Now, layoffs are spilling into other sectors as well. For instance, Disney, Goldman Sachs, and FedEx recently announced job cuts. Even McDonald’s is downsizing.

But no matter where and when layoffs happen, we can’t help wondering about the people who’ve lost their jobs. How will they cope financially? How will their mental health be affected?

It’s natural to be concerned about their wellbeing. But what about employees who remain onboard? We shouldn’t forget about them.

Many of these layoff “survivors” are likely to be suffering as well. They may be expected to put in extra effort or take on additional tasks to cover for those who are gone. All the while, they’re worrying about whether their own job will vanish next. Survivor guilt only compounds their problems.

Recognizing the Trauma of Layoffs

When lives are lost in a traumatic event, survivors sometimes feel guilty because they didn’t die. Or they may obsess about what they could have done (but didn’t) to help save others. This survivor guilt phenomenon also emerges in the aftermath of work layoffs. Although the situation is less dire, employers should take it seriously.

Remaining employees may feel guilty because they still have a job when others lost theirs. They may believe they’re less worthy or less skilled than those who were laid off, which further compounds feelings of guilt. This is one reason why layoff survivors typically don’t perform as well as predicted, which can ultimately harm business performance.

Learning From Covid Layoffs

The last big wave of layoffs happened during the Covid pandemic. At that time, my organization conducted research to understand the impact on employees. Specifically, we asked people how much they agreed or disagreed with these questions:

  • I am annoyed or angry that I am still working, when others have been laid off or furloughed.
  • I feel guilty about having a job, when others have been laid off or furloughed.

We found that remaining employees were much more likely to feel guilty than annoyed. In fact, only 5% agreed or strongly agreed that they felt annoyed or angry. In contrast, 33% agreed or strongly agreed that they felt guilty. This means a third of respondents were experiencing survivor guilt.

Upon closer inspection, we found that the extent of this guilt varied considerably from person to person. In part, it was due to differences in personality preferences for either Thinking or Feeling, a dimension included in the Myers-Briggs Type Indicator (MBTI) framework.

People with a Thinking personality preference prefer to make decisions based on objective logic. In contrast, those with a Feeling preference favor decisions based on values and how those decisions affect people.

Our research found that individuals with a Feeling orientation were significantly more likely to experience guilt than those who lean toward Thinking. Specifically, 44% of people with a Feeling preference agreed or strongly agreed that they felt guilty, compared to only 21% people with a Thinking preference.

How Guilt Affects Remaining Employees

Given today’s economic pressures, organizations could see a repeat of the 2020 survivor response. It’s important for line managers to pay close attention to this, because survivor guilt can erode job performance.

But here’s a potential problem: Managers and executives are far more likely to have a Thinking personality preference. This means they’re less prone to survivor guilt, themselves. They’re also less likely to notice survivor guilt in others, or take it seriously.

How can organizations bridge this gap? The MBTI assessment and similar tools can help managers understand if their staff members see the world the same way they do. When an assessment reveals misalignment, it can help managers recognize that, even if they aren’t experiencing survivor guilt themselves, they should be open to others who are struggling.

Steps to Minimize Survivor Guilt

Managers and HR specialists can take several steps to mitigate the worst effects of survivor guilt. For example:

1. Let remaining employees know that you addressed all those who were laid off as individuals and you treated them as well as possible. But don’t communicate this message if it isn’t true. People with a Feeling preference have a knack for sensing inauthenticity. So lying will make matters worse than saying nothing at all.

2. Offer to help employees who lose their jobs. For example, you may want to offer outplacement counseling to everyone who is laid off. Providing this kind of support is a moral thing to do. Plus, it can improve morale and engagement among those who remain. So, even though it increases the upfront cost of layoffs, this investment can lead to tangible business benefits.

3. Reassure employees that, even if they had been prepared to make sacrifices themselves, the outcome wouldn’t have changed. Again, don’t communicate this message unless it is true.

4. Clearly explain the rationale for layoffs to those who are leaving as well as those who remain. This helps avoid the appearance of arbitrary decision making.

5. Do not congratulate survivors because they still have a job. This may only increase any guilty feelings they’re experiencing.

6. Establish multiple channels to share information on an ongoing basis. People have different communication preferences, depending upon their personality. That’s why it’s important to offer a variety of methods, especially if your organization includes remote and hybrid workers. Here are several ideas:

Provide opportunities for people to ask questions and submit suggestions. Some people prefer live face-to-face discussions, group meetings, online forums, or instant messaging. Others need to think about questions and submit them in writing. These people may feel more comfortable with on-demand online events, online feedback forms, email messages, or anonymous surveys.

Whatever communication mix you implement, be sure to set expectations for how quickly you’ll respond to questions, ideas and comments. And once those guidelines are in place, be sure to follow through.

Final Thoughts

Whenever employers initiate layoffs, it’s vital to consider the organization’s psychological contract with employees. Unlike a tangible work contract based on things like salary and working conditions, the psychological contract is intangible. It focuses on values and “the way we do things around here.” This contract is an implied agreement between employer and employee.

Organizations must consider if and how layoffs violate this contract. When this is the case, leaders must explain their actions. Otherwise, employees with a Feeling personality preference may walk away from their jobs without any explanation or warning. They’re likely to feel justified because their values have been compromised.

To avoid these unintended consequences, think ahead about the implications of layoffs — not only for those who will lose their jobs, but also for those who will remain. Then act accordingly. If you want your organization to prosper in the long-run, ignoring survivor guilt is not an option.

An Unexpected COVID-19 Side Effect: Survivor Guilt for the Employed

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The pandemic has brought significant physical and mental health concerns to people around the world. With business closings, reductions in force, and forced isolation for those who kept their jobs and careers uninterrupted, the pandemic has also brought an unexpected side effect — survivor guilt.

Traditionally, survivor guilt occurs when a person has survived something traumatic that others have not made it through. In the recent workplace, we have used this term to describe co-workers being laid off or furloughed due to the pandemic’s impact and adverse effects on the economy. The employees who still have their jobs may now feel guilty that they survived the layoffs, whereas their co-workers did not.

This feeling comes alongside the general anxiety that comes from everyday life and the pandemic. It’s a stressful time, with negativity and frustration felt across many industries. Seeing co-workers lose their jobs can add to those mental health concerns. At work, sharing these feelings with people who have similar experiences has been a resource for some.

According to a survey, 61% of respondents feel comfortable discussing mental health with their co-workers. As trusted co-workers get laid-off, employees may, in turn, bottle their anxiety or depression along with the new survivor guilt. This cycle creates an ongoing mental health crisis in the workplace.

Mental Health During the Pandemic

Survivor guilt speaks to the overall mental health crisis during the pandemic. With isolation and social distancing comes loneliness, depression and anxiety. These feelings can affect how people handle everyday tasks and their jobs. If an employer sees an individual’s performance dwindling, there’s a chance it’s due to a mental health concern.

In fact, 41% of adults have reported symptoms of anxiety or depressive disorders during the pandemic. Since it’s unclear how long the pandemic will ultimately last, bringing up the conversation is the best way to move forward.

Thus, to best help their employees, it’s now critical for the workplace to acknowledge these concerns. Through the support and discussions enabled by an effective mental health program, employees can obtain the tools they need to cope with survivor guilt and other existing mental health issues.

According to a study, 91% of employees believe the workplace should assist with mental health issues. However, in that same study, 73% of respondents stated that their job does not discuss mental health. As stress, guilt, grief, anxiety, and depression fluctuate through the pandemic, workplaces must incorporate these discussions into their culture. After all, if employees hold on to negative feelings with no outlet or resources, their mental health will continue to deteriorate, as will their performance at work.

Plus, destigmatizing mental health conversations at work fosters a more efficient, healthier environment for everyone.

Solutions for Survivor Guilt

To move forward within the workplace in a healthy way, communication is going to be critical. Feedback and dialogue are tools for bringing up what concerns people have been suppressing, like survivor guilt. Along the way, employers must be in tune with what their employees feel, then listen fully before acting or responding.

Supervisors can open up the dialogue about why the layoffs were necessary and encourage employees to voice how the firings themselves, and the departure of colleagues, has affected them. They should also discuss their needs from the work and company perspective. For instance, employers often ask survivors to work longer hours, yet they have to balance caregiving and home responsibilities on top of their professional lives.

It’s likely best to avoid congratulating anyone for keeping their job while others have lost theirs. Even as a response to their endurance and dedication to the company, employees may focus on the emotional aspect rather than the business side should any form of “congratulations” (let alone “your lucky to still have your job) come into a conversation.

Finally, consider feedback an ongoing conversation – not a one-time thing. Feedback can be as open or as anonymous as people want; regardless of the format, it facilitates more open discussions and, ultimately, more change. With the information collected during feedback sessions, the employer can provide a more transparent plan on the post-layoff direction the company is taking. Simultaneously, employees can voice their opinions on the layoffs and receive resources for mental health counseling. Through effective dialogue, they can also feel secure in their own jobs and benefits.

Making It Through the Pandemic

The pandemic poses countless challenges for people in and out of the workplace.

For those experiencing survivor guilt, it’s essential to speak up and reach out to helpful resources. Don’t go it alone. As many have already learned, issues that affect mental wellness don’t often just go away. Time does not heal all wounds.

For HR professionals, it’s critical to shift the company culture to be more open. We must be honest about the wide range of feelings that come with layoffs and the pandemic in general. Only then can employees move forward and overcome survivor guilt and other obstacles that negatively impact their mental well-being.