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ANNUAL REPORT

The hidden costs of layoffs

With layoffs on the rise, HR leaders need to look beyond managing exits and plan for what comes next. Our latest report explores the hidden costs of workforce reductions and how to minimize disruption and rebuild confidence.

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The report explores 3 key themes:

The layoffs landscape

Layoffs show no sign of slowing in the year ahead.

The current state of offboarding

Organizations are managing exits, but not fully supporting transitions.

Layoff aftershocks

Layoffs trigger aftershocks that affect trust, brand, engagement, and retention.

The layoffs landscape

Nearly 6 in 10 (57%) HR leaders say their organization is likely to conduct layoffs in the next 12 months. Each layoff brings increased scrutiny from employees and the public.

The current state of offboarding

Almost two thirds (63%) of employees who experienced layoffs in the last year say they were handled fairly, suggesting employers are making a genuine effort to manage workforce change responsibly. However, only 45% of HR leaders say offboarding includes career transition support, suggesting a focus on exits over transitions.

Layoff aftershocks

39% of employees say layoffs negatively affect perceptions of their employer, and these experiences carry outsized brand risk. 40% of HR leaders say layoffs led to increased voluntary turnover, impacting productivity, particularly if high-performing employees leave.

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Discover the data, emerging trends, and proven strategies to minimize layoff aftershocks and rebuild trust.

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We help organizations navigate workforce change with career transition, talent development, and workforce design solutions.

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