Rebuilding Workplace Culture: Turning Change into Opportunity to Enhance Engagement and Retention

In today’s rapidly changing business landscape, corporate restructures are often a result of shifting priorities — whether due to new leadership, changes in mission or vision, productivity challenges, acquisitions/divestitures, political landscapes, policy changes, or addressing a toxic culture. While these changes may be necessary for long-term sustainability, they often leave remaining employees navigating different responsibilities with changing resources. According to our 2024 Human Resources Survey, workplace culture transformation was ranked as the third greatest challenge for leaders. Research shows that even modest layoffs can have a profound ripple effect on an organization’s workforce. A study highlighted in the Harvard Business Review found that layoffs affecting just one percent of employees were followed, on average, by a 31 percent increase in voluntary turnover among remaining staff. Leaders and managers play a crucial role in maintaining employee morale and retaining top talent. Transparent communication, recognition of employee efforts, and a clear strategy for navigating the new normal are essential to fostering a sense of stability. By embracing these challenges as opportunities, organizations can redefine their culture and empower employees to thrive amid change. 

Focus on Culture

According to Gallup, people are often driven by a strong organizational culture, a compelling mission, and a positive job experience, as much as they are by financial rewards. This is crucial for rebuilding engagement and motivation after layoffs. To reorient employees to a different sense of purpose, leaders can regularly communicate the company’s mission, celebrate team accomplishments, and foster a sense of community through team-building activities. Additionally, providing opportunities for employees to contribute to the organization’s future direction and recognizing their individual contributions can strengthen their connection to the workplace culture.

Leadership Engagement

A recent Forbes article highlighted that after a restructure, oftentimes, faith in leadership is shaken and causes a disconnection among the remaining team members. Leaders need to have honest conversations about the impact on senior management structure, be open about what happens next, and serve as positive role models.  People are more likely to re-engage when leaders actively listen to their concerns, acknowledge the difficulties, and show empathy throughout the transition. To foster this connection, leaders can make themselves available for open dialogue, express vulnerability about the challenges, demonstrate commitment to the team’s well-being, and lead by example in taking on shared responsibilities during the transition.

Recognize Limitations

After layoffs, leaders may be tempted to stretch resources thin by asking remaining employees to take on more work, which can quickly lead to burnout and resentment — especially among the hardest workers. To avoid this, it’s crucial to assess and prioritize tasks to identify what can be delayed, reassigned, or eliminated. By cutting non-essential meetings and projects, leaders can focus their team’s efforts on high-impact goals, preventing overwhelm and ensuring that employees feel empowered to succeed.

Increase Recognition

Employees value promotions and raises not only for financial rewards but also as meaningful symbols of their hard work and talent. Acknowledging each individual’s contributions regularly and sincerely fosters a sense of appreciation and motivation. By openly recognizing their efforts, you show that you see their value and are invested in their growth. Additionally, planning how to reward employees as the business recovers helps maintain optimism and provides something to look forward to, reinforcing their commitment to the organization.

After a restructure, leaders have a unique obligation to strengthen their organization by focusing on culture, communication, and employee well-being. By prioritizing transparency, recognizing individual contributions, and acknowledging the challenges employees face, organizations can rebuild trust and morale. With a clear sense of purpose and support from leadership, employees will feel more empowered to engage, contribute, and thrive in a transformed workplace. By approaching this transition with empathy and strategic focus, companies can emerge stronger, with a more resilient and committed workforce, significantly improving employee retention and positioning the organization for long-term success.

Unleash your team’s true potential with The Leets Consortium (TLC). A top-tier leadership development group, we have achieved outstanding results for Fortune 500 companies and prestigious organizations globally. TLC specializes in empowering employees through tailored talent development and coaching programs that drive success. We are dedicated to excellence in every aspect of supporting our clients’ leadership initiatives. Contact us today to learn how we can help your organization thrive.