In 2025, the UK labour market is under pressure. Employer confidence is lower than it’s been in decades, and redundancy intentions are at their highest in 10 years across the UK, causing a significant dip in employee engagement and costing the economy billions annually.
This lack of corporate trust is not just an HR problem; it’s a business risk. With recent surveys highlighting an engagement rate of only 10% in the UK, British employees’ anxiety about job security is affecting their productivity, team spirit, and motivation, all of which have a negative effect on the individual job experience and the overall output of entire companies.
Faced with this uncomfortable reality, there’s one question everyone is asking. After making tough staffing decisions, how can leadership effectively rebuild internal trust and restore stability in an atmosphere of doubt, all while maintaining productivity and credibility in the outside world?
Whether your company is currently battling the post-layoff malaise or simply preparing to in the future, here’s how to navigate it prudently.
DEALING WITH THE POST-LAYOFF HANGOVER
If your business finds itself in the difficult position of having recently laid off employees, there are a few diagnostics you can expect.
- Lower engagement: when layoffs happen, motivation plummets. People feel uncertain about their future with the company, leading to disengagement and decreased productivity.
Trust scarcity: a 2024 survey shows that up to 24% of UK employees do not trust senior leadership to be honest about their futures. - Increased attrition: If employees fear being laid off, many will take matters into their own hands and plan to quit themselves, even if they predict fewer job openings elsewhere.
- Lasting trust damage: Recent studies find that even up to 15 years after layoffs, surviving employees may still be 4.5% less trusting of senior leadership.
THE FOUNDATIONS OF EMPLOYEE TRUST
When redundancies occur, employees may experience a wide range of natural human responses, including feelings of betrayal, disillusionment, anxiety, and uncertainty. They may also feel shaken by the loss of co-workers they may have known for years, and the threat of potentially losing their own jobs somewhere down the line.
In this shaky economic climate, the best way to start rebuilding trust is to shift the focus onto cornerstone values that inspire confidence and security, namely:
TRANSPARENCY AND COMMUNICATION
Post-layoff lack of clarity can do just as much damage as the layoffs themselves. Don’t leave employees in the dark about what is happening or why. Explain your business rationale as clearly as you can in order to avoid confusion, outrage, and the spread of rumours.
LEADERSHIP VISIBILITY AND INTEGRITY
Leadership visibility signals accountability. When leadership is perceived as strong, employee engagement tends to increase; however, when it is perceived as weak or unreliable, the opposite occurs. In many ways, the amount of trust employees place in their employers is directly linked to the presence of strong leadership and its commitment to the values it claims to represent.
REINVESTMENT IN CAREER GROWTH AND WELLBEING
Rebuilding trust requires showing surviving employees that they are central to their company’s future. That means reinvesting in them through mentorship programmes, upskilling opportunities, and enhanced support for mental health and wellbeing.
MOVING FORWARD TACTFULLY: A STEP-BY-STEP GUIDE
As pervasive as the aftereffects of layoffs can be, there are actionable steps businesses can all take to alleviate them and start rebuilding both corporate trust and employee engagement.
STEP 1: LAUNCH A PULSE CHECK SURVEY
When trust is in deficit, the best first move is to listen. Within a few weeks of the layoffs, offer employees a survey to gauge their anonymous sentiment regarding job satisfaction, engagement, security, and trust in leadership. By asking employees for their honest opinions, you will not only gain a deeper understanding of their feelings, but you’ll also demonstrate a commitment to transparency and future change.
STEP 2: PUBLISH A PROMPT FOLLOW-UP PLAN OF ACTION
Using information you gain from the survey, develop a plan of action based on the primary concerns found, and share it with the employee body. Words and intentions without action are exactly what surviving employees are afraid of. So, ensure that every measure is taken to fulfill your follow-up strategy. Be specific in your deliverables, no matter how big or small, and stick to them.
STEP 3: INITIATE RE-ENGAGEMENT ACTIVITIES
Utilise data-backed engagement strategies to revitalise employees’ relationship with their occupation and stimulate productivity throughout the company. Promote interdepartmental collaboration, open dialogue, a healthy work-life balance, and flexibility wherever possible.
Additionally, reconnect employees with their sense of purpose by refocusing on company values and long-term vision. The more aligned employees feel with their career and the impact it may have on the world, the more likely they are to feel engaged at work and less likely to seek work elsewhere.
As you implement these initiatives, consider creating subtle visual cues, such as infographics or progress charts, to help employees see the impact of the initiatives and reinforce transparency in a non-obtrusive way.
STEP 4: REINVEST IN CAREER GROWTH AND LEARNING
Redundancies can leave people feeling extremely uncertain about their personal career trajectories. You can help quell that uncertainty by offering learning programmes, mentorship, and upskilling opportunities that give employees new skills, broaden their expertise, and prepare them for future roles within the company.
Providing access to courses, workshops, and professional development initiatives supports career growth and demonstrates that the organisation values its employees and is invested in their long-term success. Encouraging continuous learning helps rebuild confidence, motivates staff to stay engaged, and shows a tangible commitment to their professional future.
STEP 5: MONITOR PROGRESS
Last but certainly not least, keep track of how your trust-restoration strategies are received by staff and make adjustments where needed. Host Q&As to continue gaining insights about employee experiences, and share updates on what has changed. This helps the business stay informed about progress while demonstrating transparency and accountability for moving forward.
IN CONCLUSION
The erosion of trust and engagement that inevitably arises in a post-layoff workplace climate poses a danger to employee retention, productivity, and morale. But with the right trust restoration strategy, both performance and engagement can be rebuilt.
Regaining employee trust isn’t about avoiding difficult decisions or conversations; it’s about managing them intrepidly through strong leadership, transparent communication, and tangible commitment to future investment in employee security.
By implementing these core values and following a thoughtful plan of action, companies across all industries can inspire purpose, restore security, and sustain a healthier workforce sentiment for their employees.
Author: Addisson Shaw – Content Scrivener
Photo credit: StockCake
