How to Rebuild Trust with Post-Layoff Re-Onboarding

In today’s volatile business landscape, layoffs have become an unfortunate reality. But what happens after the dust settles? We’re joined by Ling-yi Tsai, an HRTech expert with decades of experience helping organizations navigate change. She specializes in leveraging technology and data to rebuild stronger, more resilient teams. Today, we’ll explore the critical, yet often overlooked, process of “re-onboarding” the employees who remain after a downsizing. We will delve into the hidden costs of neglecting these survivors, the crucial steps for rebuilding trust and capability, and how leaders can steer their teams through uncertainty toward a renewed sense of purpose.

The Kahoot survey mentioned that 65% of layoff “survivors” make costly mistakes due to a lack of training. From your experience, what are the most damaging types of errors you’ve seen, and how does this “hidden tax” on employees manifest in day-to-day operations?

The most damaging errors are often the quiet ones that erode productivity and morale over time. I’ve seen everything from critical data being entered incorrectly because someone inherited a spreadsheet without context, to customer service standards slipping because a team member is suddenly handling unfamiliar inquiries. This “hidden tax” is a massive drain. Imagine the reality where 84% of your remaining staff are spending work hours just trying to teach themselves how to do their new, expanded jobs. One in four are dedicating more than four hours a week to this self-education. This isn’t just lost time; it’s a constant, low-grade stress that leads to burnout as trial and error becomes the default training method, a truly inefficient and demoralizing way to operate.

Rob Porter states that after layoffs, even long-term staff are in a “new company.” Beyond simply redistributing tasks, what are the key cultural and workflow shifts that leaders often overlook, and what are the first three steps an HR team should take to address them?

That’s a profound and accurate statement. Leaders often get so focused on the new organizational chart that they completely miss the seismic cultural shift. The informal networks are broken, trust in leadership is fragile, and there’s often a pervasive sense of anxiety and survivor’s guilt. Employees are looking at their long-time colleagues and wondering, “Am I next?” To address this, an HR team’s first step must be to reframe the change. Don’t just dump tasks on people; frame the new responsibilities as genuine growth opportunities and back that up with resources. Second, implement a structured re-onboarding program immediately. This isn’t just about process; it’s about providing clarity, restoring confidence, and ensuring everyone understands the new mission. Finally, facilitate transparent communication from the very top. This is non-negotiable for rebuilding the psychological safety that was shattered.

The article suggests simulations and peer-led learning are better for re-onboarding than traditional methods. Can you describe a specific scenario-based exercise that helps a team adapt to new workflows and what metrics you would use to measure its success in rebuilding confidence and capability?

Absolutely. Simulations are incredibly powerful because they create a safe space to fail and learn. Imagine a scenario where a project manager, whose team has been downsized, now has to manage vendor contracts, a task previously handled by a legal department liaison. We could create a simulation where they are given a mock contract with tricky clauses and a new software tool for tracking approvals. They would have to navigate the workflow, make decisions, and see the immediate consequences in a low-risk environment. To measure success, I’d track pre- and post-simulation metrics. Quantitatively, we’d look at the time-to-completion for their first real contract and the error rate. Qualitatively, we’d use pulse surveys to measure their self-reported confidence level in the new task and their clarity on the new process. Seeing that confidence score jump is a fantastic indicator of success.

When resources are tight, Mr. Porter recommends a single leadership session to restore trust. What key messages must leaders communicate in this meeting to realign purpose, and what common pitfalls should they avoid to ensure the session doesn’t backfire and create more anxiety?

In a high-stakes session like that, clarity and authenticity are everything. The first key message must be a transparent explanation of why the layoffs happened, connecting it to the business reality without corporate jargon. The second, and more important, message is a compelling vision for where the company is headed now. Employees need to see a path forward and understand how their role, even if it has changed, is critical to that future. The biggest pitfall is a lack of genuine empathy. If a leader reads from a script, avoids tough questions, or fails to acknowledge the human impact and the emotional toll, the session will absolutely backfire. It will be seen as a tone-deaf corporate exercise, creating even more cynicism and anxiety than before.

What is your forecast for how technology, such as AI-driven tools, will shape the future of re-onboarding, and do you see this becoming a standard, non-negotiable part of the post-layoff playbook for all companies?

My forecast is that technology will make personalized re-onboarding not just possible, but essential. AI-driven platforms will be able to analyze an employee’s previous role and their new, expanded responsibilities, then automatically curate a custom learning path of micro-modules and resources. Imagine an AI tool that detects an employee is struggling with a new software and proactively offers a tutorial or connects them with a peer expert. This moves us from a one-size-fits-all approach to a deeply individualized support system. It will absolutely become a non-negotiable part of the post-layoff playbook. The data is too clear—with up to 77% of younger employees making costly mistakes without it—the risks of disengagement, burnout, and talent flight are simply too great to ignore. Companies will realize that re-onboarding isn’t a cost; it’s the most critical investment they can make in the people they chose to keep.

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