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In the modern workplace, organizational changes can redefine, reorganize, or eliminate jobs altogether. These situations can be uniquely stressful for staff, presenting HR with a common, critical question: How do we manage workforce disruptions with compassion and clarity?
The answer is: through integrity in leadership. Whether it’s navigating layoffs, reskilling displaced workers, or addressing anxiety around sudden change, ethical leadership must lead the way and help maintain mental health as one of the main priorities of today’s workforce.
We recently discussed how HR can help mitigate the potential negative impact of quiet cutting on workers’ mental health. Similarly, this article will explore how HR can uphold trust and transparency while guiding teams through times of uncertainty and organizational transition.
How Do Workplace Changes Impact Employee Mental Health?
Workplace changes such as layoffs, hiring freezes, work reassignments, or department restructuring can significantly affect employee mental health. These shifts often bring uncertainty, making employees anxious about their job security and career future.
As this Mental Health Awareness Month reminds us, organizations cannot underestimate those factors. Handling change without transparency erodes trust, reduces morale, and hurts engagement, leading employees to experience heightened anxiety and even physical symptoms of stress.
For individuals, taking on more responsibilities after a workforce change without additional support can contribute to employee burnout, a mental health issue that is at its highest point since 2016. A 2024 Boston Consulting Group (BCG) report indicates that 48 percent of workers surveyed across eight countries are experiencing burnout. In the US, that proportion hits 50 percent—exactly half of the country’s workforce.
These rising effects of burnout on employees and the workplace make ethical leadership and mental health support more critical than ever. HR must recognize how integrity in leadership can help mitigate these effects and guide employees through times of stress with compassion and clarity.
Expert insights:
Depression and anxiety cost the global economy an estimated 12 billion working days or US $1 trillion per year in lost productivity. (World Health Organization, 2024)
What Is Integrity in Leadership?
Integrity in leadership means aligning words with actions and setting the moral tone of the workplace in the process. In HR, this practice involves being transparent about organizational changes, delivering on promises, and treating all employees with respect and fairness. In the end, everyone wants to be treated fairly, even when instability seems to become the norm.
Leadership integrity is even more vital in disruptive times, like workforce changes. Leaders who can communicate openly, acknowledge uncertainty, and prioritize people over processes will earn the trust of their workforce. This way, they’ll lay the foundation for smoother transitions during challenging events such as role reassignments, major workflow changes, or even layoffs.
Speaking of layoffs, if you need help addressing them with your employees, click below to download our free Careerminds layoff script. It will guide you through the five steps to navigate this challenging process with empathy and professionalism.
How Can Integrity Help HR Manage Workplace Anxiety?
In a climate of frequent change, HR teams often carry the burden of delivering difficult news, whether it’s communicating layoffs, structural realignments, or workforce reductions. These moments are a big test for managerial skills and ethical leadership.
As the BCG report shows, burnout affects nearly half the global workforce. US workers are particularly feeling the pressure, with long hours, job insecurity, and rising performance expectations contributing to ongoing mental health challenges. For employees already feeling stretched thin, the added stress of workforce changes can lead to disengagement, depression, and even physical illness.
This is where integrity in leadership becomes vital. Employees can endure change if they feel seen, heard, and respected. HR professionals who communicate openly, explain the “why” behind decisions, and acknowledge the emotional toll of such transitions are better equipped to maintain employee trust—even in hard times.
Ethical leadership sets the tone. When leaders and HR professionals demonstrate empathy, follow through on promises, and remain present through the ups and downs, it creates a culture where employee mental health is a priority instead of an afterthought.
What Are the 5 Ways You Can Show Leadership Integrity?
When companies decide to make structural changes, HR leaders must manage those situations with unwavering ethical commitment. This principle is crucial for navigating the emotional and organizational challenges that those scenarios bring.
To provide you with some tips for leading with integrity, we sought inspiration from a Forbes article by Irma Becerra, president of Marymount University. Her piece outlines how integrity leadership can serve as a stabilizing force in turbulent times.
Based on her insights, here are five ways that HR can lead with integrity:
1. Demonstrate Consistent Acts of Integrity
During workforce transitions, HR leaders must model ethical behavior and consistency in every decision, especially around layoffs, role changes, or reskilling. Becerra notes that employees notice every action, both big and small. A clear commitment to fairness, transparency, and accountability will help reinforce trust even when decisions are tough.
2. Be Accessible to Support and Inspire
As organizational changes raise fears and questions, adopt an open-door policy, creating a space for employees to express concerns, propose ideas, or ask for clarity. Becerra says that by being available and empathetic, HR will show that people—not just productivity—remain a priority.
3. Practice Active Listening and Clear Communication
In times of change, messages can be easily lost or misunderstood. Becerra stresses the importance of active listening to understand concerns and clarify intent. HR can foster a culture of trust by asking open-ended questions, validating employee emotions, and ensuring that communication is a two-way street.
4. Revisit and Reflect on Goals and Values
During workforce changes or reductions like layoffs, companies are compelled to put efficiency first. However, Becerra reminds us that regular reflection is key. HR must ensure that every policy or restructuring aligns with the company’s core values and long-term mission. Keeping communication channels open will help course-correct when needed.
5. Lead by Example, Not Exception
Above all, integrity in leadership means walking the walk. When HR and company leaders show up consistently with honesty, humility, and ethical clarity—even when inconvenient—they cultivate an organizational culture that can weather uncertainty. As Becerra writes, people always want to work for ethical leaders, especially in times of change.
Integrity in Leadership: Key Takeaways
More than a principle, integrity in leadership is a practice. For HR professionals, leading with integrity builds the foundation for trust, resilience, and well-being, especially during turbulent times like layoffs.
As we continue to highlight the importance of mental health awareness and support for employees through workforce changes, let’s remember: transparency, empathy, and ethical leadership are the right things to do—and just what your employees need during those times.
At Careerminds, our outplacement and leadership development services are here to help you achieve that. Beyond career progress, our coaches support mental and emotional well-being, helping individuals stay confident and motivated. It’s a practical way that HR can protect mental health in the workplace while leading with empathy and integrity.
Click below to talk to our experts, explore our resources, and learn more about our industry-leading services.
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