Survivor Guilt After a Company Layoff

According to a recent Crunchbase article, more than 46,000 employees in US-based tech companies have been let go so far in 2023, including the recent cuts by Microsoft and Alphabet last week. As troubling as this number is, there's good reason to believe that the worst is yet to come.?

Layoffs are an unfortunate reality in today’s business climate. While they’re often necessary for financial or operational sustainability, the impact of a layoff can extend beyond the departed employees and have a profound effect on the remaining team and on corporate culture. The impact can be especially grievous when a layoff leaves an anxious, stressed, and disengaged workforce in its wake. To help prevent performance, well-being, and morale from being compromised during and after a layoff, organizations must understand the psychological impacts of layoffs and respond intentionally. At a minimum, this means that when layoffs are conducted, it’s vital to ensure that the process is handled in an ethical and humane manner. Employers must take great care to ensure they have a clear and fair process in place to inform those who are being laid off and provide support to those affected. Judging by my LI feed, it seems that for many people this, unfortunately, wasn't their experience.

Perhaps not surprisingly, most of the attention and concern in a layoff is on the employees who are let go. Less common is for organizations to tend to healing those who were spared. Yet, layoffs can also have a lasting impact on those who remain in their jobs. Non-impacted employees often experience "survivor guilt," feeling remorse for still having a job when their co-workers have lost theirs. Survivor guilt, also known as “survivor syndrome” or “survivor remorse,” is the emotion experienced when an individual survives a traumatic event while others don’t. It’s a term that historically has been used to describe feelings of guilt experienced by people who survive a life-threatening situation. However, the concept is apropos to a variety of distressing events and has recently re-entered the lexicon of corporate-speak in the midst of a seemingly endless series of company layoffs.?

A multitude of research demonstrates that survivor guilt in the workplace is a robust phenomenon. Several studies provide evidence that, compared to pre-layoff, survivors report lower job involvement (Brockner, J., Grover, S. L., & Blonder, M. D., 1988), commitment (Armstrong-Stassen, 1998; Allen T. D., Freeman D. M., Russell J. E. A., Reizenstein R. C., Rentz J. O., 2001), performance (Armstrong-Stassen, 1998; Brockner J., Spreitzer G., Mishra A., Hochwarter W., Pepper L., Weinberg J., 2004; Travaglione and Cross, 2006), and higher feelings of insecurity and strain (De Cuyper N., De Witte H., Vander Elst T., Handaja Y., 2010).?

Layoffs have also been associated with a decrease in creativity among surviving employees (Amabile and Conti, 1999), as there’s less motivation to come up with new ideas and diminished willingness of team members to collaborate with one another. Trust in leadership may also erode if survivors question their employer's motives for the layoff. Survivors may also begin to doubt the direction of their company and the competence of the leadership team. They will also be reminded of their own mortality, elevating fears that they could be the next to go. This may pressure survivors to work harder than ever before to prove they're worthy of their jobs and ultimately lead to burnout.

Survivor guilt is a natural reaction to layoffs and can not only be a significant source of emotional stress for those left behind but also have serious implications for organizations, as survivors often feel responsible for the layoff, and may struggle to stay focused and motivated in their roles. For these reasons (and many others), it's vital that companies take proactive steps to help employees deal with survivor emotions in a healthy way.

A key factor contributing to survivor guilt - or lack thereof - is how layoffs are handled by a company. Yet, in many organizations, layoffs are conducted with little regard for the remaining team members, who may feel betrayed, anxious, and angry. The feeling of betrayal can be especially strong if the layoffs are done in a way that appears to be arbitrary or unfair. For example, if employees who have been with the company for a long time are laid off without a reasonable explanation. Last week, current and former Alphabet employees questioned the criteria for layoffs after learning that some departing employees were long-tenured or recently promoted. This decision left at least some remaining team members anxious and wondering how individuals with a track record of positive reviews could be laid off. Not surprisingly, survivors may feel that their jobs are no longer secure and that they could be next.

By recognizing the potential for survivor guilt, companies can help their employees cope with difficult emotions. IMHO, it must start with communicating transparently. Being honest and open about why layoffs occurred and the future of the company, fostering ongoing dialogue with employees, and ensuring that team members feel comfortable sharing their concerns without fear of judgment or retribution are table stakes.