Another day, another set of research data pointing to the sub-optimal state of employee experience (EX). The Workforce Institute at UKG recently released data that said nearly half of employees worldwide (46%), including one-third of C-level leaders (29%) in the U.S., would not recommend their company nor their profession to their children or a young person they care about. And (a bit dramatically), 38% of employees globally “wouldn’t wish my job on my worst enemy” – which rises to 45% in the U.S. Ouch.

And now there are the repercussions of layoffs. Perceptyx just shared some data from a recent survey the company conducted which points to concerning trends in employee wellbeing due to layoff fears. All employees surveyed reported a new increase in negative coping behaviors, whether they have experienced layoffs at their own company or have just heard about it at another company. One out of every four employees report periods of anxiety, low energy, and sleep disruptions, and one in 10 say they have increased drinking or drug use, and are exercising less because of layoff news. More than 12% said they are more short-tempered and are snapping more at family or co-workers, a number which doubles (to 23%) for those directly or indirectly impacted by layoffs. The groups more affected include men, parents of young kids, young employees (under 35), tech employees, and remote and hybrid employees.

In workplaces where there were rumors of layoffs, 90% admit to being worried, eight points higher than those who received official layoff communications. Perceptyx raises the suggestion that clear and authentic communication is critical to alleviating some of the negative outcomes of layoff anxiety.

“Without official communication, employees will share unofficial rumors. In the case of bad news, such as job losses, these rumors raise the worry level and subsequent negative outcomes significantly,” says Emily Killham, Director of Research & Insights at Perceptyx.  “The most successful organizations communicate openly and regularly about the health of the business. Although at times these are sensitive issues, your employees are more likely to remain productive and healthy members of your team if they have correct information and aren’t letting their anxiety fill in the gaps.”

Dash Research completely agrees with the need to leverage communication tools during layoffs and other periods of organizational turmoil. Employers must work to provide a steady flow of accurate, timely, and empathic communications before, during, and after a reduction. This is true for both staying and leaving employees. The ability to have communication tools that are accessed by remote or dispersed workforces will be particularly important, as those employees often feel particularly detached from corporate communication flows.

The Perceptyx research also shows that this anxiety may turn into increased resignations. Seven in 10 employees will ramp up their job searches in the next 60 days after just hearing layoff rumors – the same as those at companies directly impacted by layoffs. Employees who are worried are 50% more likely to say they do not expect to be with their company 12 months from now. “While in past years we saw people hunker down and hold their jobs close when layoffs occurred, that’s not the case today. Employees who are worried are now more likely to jump ship proactively – and many don’t see the point in putting in extra effort if the job cuts are unrelated to performance,” says Killham.

A focus on employee wellbeing is going to be crucial in the months ahead to help with retention. Even when managed in a professional, empathetic manner, company culture can take a big hit. Layoffs can lead to a sense of disconnection, hurt, and mistrust. In the worst of circumstances, employees experience all the above, and are asked to do more. Employee feedback and listening solutions are always important tools to use but during times of crisis, they are even more so. Companies must get a continuous gauge of employee sentiment, concerns, questions, and friction areas so that action can be taken to support staff. Using employee reward and recognition programs can also be used as a solution for retention. It is also important to not look for cost savings in discontinuing programs that make employees feel good about the company they work for. These could include sustainability, diversity, equity, and inclusion (DEI) initiatives, giving, and volunteering programs.