Prioritizing Mental Health in the Workplace During Layoffs

Layoffs are often seen as a business necessity that companies should conduct in an efficient, straightforward way. However, they are also deeply personal and emotionally jarring for the affected individuals, be they the laid-off workers or those staying put. That’s why HR professionals must think about employee separations as moments that impact mental health in the workplace.

This Mental Health Awareness Month, we’ve been publishing a series of articles about employee mental health, raising the issues of quiet cutting and artificial intelligence (AI) as potential sources of anxiety and burnout in the workplace.

In this article, we’ll discuss how HR can approach layoffs from a mental health perspective, as well as the case for offering outplacement as a valuable resource to mitigate those issues.

Mental health in the workplace is a growing focus for HR, with depression, anxiety, and burnout becoming common challenges. These problems become more evident during layoffs, since they remove an employee’s source of income and disrupt their daily routine, social circle, and sense of purpose.

Despite this, companies still often approach the layoff process by putting efficiency before empathy, prioritizing checklists, canned scripts, and rushed exit meetings. But treating layoffs as purely administrative events fails the employees. HR’s responsibility goes well beyond severance paperwork to include monitoring and safeguarding the emotional well-being of those affected.

Employee mental health during layoffs also refers to those who are staying with the company and may experience layoff survivor guilt. This can be a common reaction to “surviving” an involuntary termination and witnessing colleagues lose their jobs. Survivor guilt can often be a mix of empathy for those laid off, relief, and remorse, potentially impacting one’s mental health.

During Mental Health Awareness Month, HR professionals have the opportunity to reflect on how their processes can support mental wellness. A more compassionate approach is both ethical and strategic. Employees who feel respected during offboarding are more likely to speak positively about the company, reducing reputational risk and maintaining morale among remaining staff.

If you need help coordinating your next layoff event, try using our free Careerminds guide for handling layoffs. Click below to see our step-by-step strategies for ensuring a smooth transition from the initial selection process to offboarding, severance, and outplacement support.

Outplacement services have a value beyond their more common representation as a career transition support process that consists of resume writing, interview coaching, and job search tools. When thoughtfully delivered, outplacement becomes a form of psychological first aid.

At Careerminds, we see outplacement as more than merely a courtesy. It’s a structured way to offer emotional reassurance, help individuals process grief, and guide them from shock to stability. 

When organizations provide outplacement support, they are not only helping impacted employees land their next job, but also actively maintaining employee mental health during a potentially destabilizing moment.

Supporting outgoing employees with thoughtful, empathetic outplacement services helps maintain a healthy, resilient workforce while reinforcing your role as a responsible HR leader. 

Let’s explore how offering outplacement can improve mental health in the workplace:

Outplacement services help quell negative emotions that often arise during a layoff, such as anger, anxiety, or self-doubt. Providing immediate, structured support signals to employees that they don’t have to navigate the process alone, reducing the psychological toll of job loss.

When employees know that their employer will continue to support them, even after a layoff, they feel more secure and valued. This emotional reassurance is critical for maintaining employee mental health across the board, including among surviving employees who remain at the company.

Modern outplacement services, like the ones offered by Careerminds, provide tailored career coaching based on each employee’s unique needs, level, and goals. This customized approach boosts clarity and confidence, helping individuals maintain a healthy mindset during career transitions.

A prolonged job search can intensify financial pressure and emotional strain. Outplacement helps employees find new work faster and, in the case of Careerminds’ services, provides support until placement. This minimizes the uncertainty that often triggers mental health issues like depression or chronic stress.

By offering outplacement as a core part of your layoff strategy, your organization demonstrates a commitment to mental health awareness and long-term well-being. It sends a strong message that your organization values its people, not just the bottom line.

As mental health awareness grows across workplaces, HR’s role is evolving beyond compliance or checking boxes. HR has a clear responsibility to foster a sense of humanity during moments of crisis, and few moments are as vulnerable as layoffs.

Outplacement services like those offered by Careerminds are essential in those uncertain times and can offer numerous benefits to both employees and their employers. 

This Mental Health Awareness Month is the right time to reframe outplacement as a mental health resource. By integrating emotional support into offboarding processes, HR teams will show leadership integrity, empathy, and a genuine commitment to their staff’s well-being.

As we know, layoffs are challenging events in which feelings like insecurity and anxiety can run high for both departing and remaining employees. HR can play a key role in helping individuals navigate this transition with care and humanity to preserve their mental health, happiness, and productivity. 

Outplacement is one of HR’s best resources to help achieve this, providing employees with personalized coaching, job search support, and psychological first aid through such an emotional career transition.

May is Mental Health Awareness Month, but for HR teams, the responsibility doesn’t end in June. It’s important to embed empathy into every phase of the employee lifecycle, including the end. Supporting mental health in the workplace also means supporting it through every employee exit.

If you’re considering outplacement, you might like to know that our Careerminds services boast a 99 percent participant satisfaction rate, an 80 percent engagement rate, and a 95 percent new job placement rate. Click below to talk to our experts and learn more about our industry-leading outplacement services.