Happy Friday,
I recently spoke with a new partner who is preparing for a significant restructuring within their organization. As we discussed the transition ahead, one question surfaced that I hear often: We want to provide outplacement support, but given the financial pressure that led to this restructuring, how do we justify the cost?
It is a fair and familiar question. Restructuring usually occurs in response to market realities, such as declining revenues, changing business models, or external factors like tariffs that affect margins. When budgets tighten, every expenditure is examined, and even well-intentioned leaders wrestle with the balance between empathy and economics.
What I often remind leaders is that the logic behind outplacement is not unlike the logic behind onboarding. Every organization instinctively invests in helping new employees succeed. We understand the ROI: engagement, performance, and retention all rise when onboarding is done well. In fact, if a manager failed to onboard new team members properly, we would question their leadership judgment.
Yet when people exit the organization, we often see that same structured investment disappear.
The offboarding process becomes a checklist rather than a leadership moment. But just as onboarding shapes first impressions, how an organization manages departures defines lasting ones, both for those leaving and those who remain.
When layoffs occur, the focus naturally lands on those who are exiting. We think about the conversations, the careers interrupted, and the uncertainty that follows. But another story is unfolding quietly within the organization: the experience of the people who stay.
Every restructuring sends ripples through the workplace, the energy changes. The hallways feel different. In the days that follow, when the boxes are cleared and the farewell emails sent, the real test of leadership begins because the story of a layoff is not only about who leaves, but about how those who stay choose to carry on.
At CareerJoy, we have supported both sides of this equation for more than two decades. Across industries and sectors, one truth stands out: when organizations handle departures with care, they strengthen trust, engagement, and commitment among those who remain. That is not a cost. It is a strategic investment in the business’s culture and stability moving forward.
There is a term that captures this reality well: survivor syndrome. It describes what happens to employees who survive a layoff but feel anxious, guilty, or disconnected. These are the people an organization most depends on to rebuild, yet they are often the ones most shaken by the process.
According to a 2022 study by the Society for Human Resource Management, 58 percent of organizations that offered outplacement support reported improved morale among their remaining staff. It is a simple truth backed by data. When people see their employer take care of others, it reinforces pride and trust in leadership.
Without that support, the cost is high. Research shows that trust in leadership can fall by more than 60 percent when layoffs occur without transparency or compassion. Once trust is broken, engagement and performance quickly follow.
Engagement is often the first casualty of poorly managed layoffs. Companies with formal outplacement programs report that 48 percent of remaining employees stay highly engaged, compared to only 33 percent where no support is offered.
That difference speaks volumes. It reflects the message employees receive when they see leadership act with empathy. The Harvard Business Review found that 82 percent of employees reported higher satisfaction and engagement when their organization provided professional transition support to departing colleagues.
These numbers tell a deeply human story. Engagement is not just about enthusiasm; it is about emotional connection. When people believe their company acts with integrity, they choose to give their best.
Layoffs can drain a team’s energy. People become cautious, less creative, and more inward-looking. Studies show that productivity often drops by 20 percent or more in the months following a restructuring.
But when organizations demonstrate care through clear communication and outplacement support, that dynamic shifts. High-trust environments, where employees see values in action, achieve productivity levels 50 percent higher than in low-trust environments.
Trust is not built through slogans. It grows through what people experience when times are hard.
Many leaders worry about those who are leaving, yet the real risk lies with those you want to keep.
Research shows that voluntary turnover can increase by more than 30 percent in the six months after a poorly managed layoff.
Organizations that provide structured outplacement and communicate openly often see the opposite result. Some report a 27% reduction in voluntary turnover during the same period. When employees feel that their company stands by its people, they are far more likely to stay.
Retention, in the end, is about trust and alignment. It is about believing that leadership will lead with humanity, even in difficult times.
Outplacement has long been viewed as a benefit for departing employees, but its actual value is much broader. It is a leadership signal that says, we take care of our people, all of them.
When outplacement is provided, trust in leadership is maintained or strengthened. Morale improves. Anxiety decreases. The employer brand remains intact. Employees feel proud to be part of an organization that lives its values.
When it is not, the opposite unfolds. Morale drops, anxiety rises, and the company’s reputation suffers. Future recruitment becomes harder, and the layoff story becomes the company’s story.
Beyond engagement and reputation lies something more profound: culture. Outplacement is not just a cost to manage; it is an investment in your organization’s emotional fabric.
We hear it again and again from the employees who stay: “It mattered that my company cared enough to help others. It made me proud to be here.”
This alignment between values and behaviour is what builds long-term loyalty. It transforms a difficult moment into an opportunity to strengthen culture.
In Canada, the balance between compassion and compliance is part of what defines outstanding leadership.
The 2025 Work. Made Better. The report found that 67 percent of Canadian employees said a company’s handling of layoffs would influence whether they would ever want to work there.
That means every layoff is not just an operational event; it is a cultural one. It shapes your reputation in the market and your credibility with the team you still rely on.
Leaders who manage restructuring well share three common practices.
These are not just leadership ideals; they are practical steps to sustain trust and resilience.
Layoffs reveal culture. They test leadership. And they define what people will remember about the organization long after the financials have recovered. Outplacement is more than a service; it is an expression of values in action.
As one HR leader recently shared with our team:
“We were focused on the people leaving, but what surprised us most was the impact on those who stayed. Outplacement helped us rebuild trust faster than anything else.”
Trust is the quiet strength that carries an organization forward.
Along the road with you,
Alan
If your organization is preparing for or recovering from restructuring, now is the moment to think about the people who remain.
CareerJoy helps employers across Canada rebuild trust, engagement, and stability through ethical, human-first transitions. Our bilingual, coast-to-coast team has supported partners including Shopify, BMW, World Vision, and the Government of Canada.
With our APEX partnership and 4.7-star Google rating, we bring both heart and evidence to the work of helping people land well and organizations lead well.
Let’s start the conversation.
Alan Kearns, Founder
alan.kearns@careerjoy.com | ☎️ 1.877.256.2569 | careerjoy.com
Human-first. AI-smart. 100% Canadian. Global reach. Proven results.
