Retaining top talent when layoffs are in the air
Let me tell you something nobody talks about: The employees you most want to keep are the ones most likely to leave when layoff rumors start circulating. Not because they’re disloyal – because they’re marketable. Top performers have options, and they’re not waiting around to see if they make the cut.
I’ve watched organizations lose their best people during restructuring because they jumped ship before the ax fell. Here’s how to prevent that.
Communicate more than feels comfortable. The vacuum of information gets filled with worst-case scenarios. Even if you can’t share everything, share something. “We’re evaluating our structure and will communicate decisions by [date]” beats silence. “Here’s what we know, here’s what we don’t know yet, here’s when we’ll know more” builds trust.
One CEO I know did monthly all-hands meetings during a difficult period. The meetings were sometimes uncomfortable. People asked hard questions. But retention of key talent stayed strong because people knew what was happening.
Double down on development. When budgets are tight, training is usually the first thing cut. That’s exactly backward. Top performers stay when they are growing. Free options work: Mentorship programs, stretch projects, cross-functional exposure. These signal “we’re investing in your future here.”
Be honest about the path forward. Don’t make promises you can’t keep, but paint a realistic picture. "We’re cutting 10%, but here’s the growth plan afterward” gives people a reason to stick around. “We’re restructuring to position for [specific opportunity]” helps people see past the current discomfort.
Recognize the people carrying extra weight. During uncertainty, your best people often absorb work from open positions or colleagues who have already left. Acknowledge this explicitly. Adjust expectations. Give them something – flexibility, bonus, title change – that shows you see what they’re doing.
What doesn’t work: Pretending everything is fine. Making the people who survive layoffs feel guilty. Expecting everyone to just “power through” without acknowledging the emotional toll. Acting surprised when people leave.
The truth about retention during layoffs: You can’t keep everyone. But you can keep the people who matter most if you’re honest, supportive, and strategic about who you fight to retain. The companies that come out of restructuring strong are the ones that made sure their best talent made it through.