The spectre of layoffs and downsizing in the federal civil service could lead to reduced workforce productivity, with senior leaders often bearing the brunt, HR professionals agree. However, there are things that employees, managers and HR teams can be doing to help. The federal budget, presented late last year, outlined plans to cut nearly 40,000 […]
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The spectre of layoffs and downsizing in the federal civil service could lead to reduced workforce productivity, with senior leaders often bearing the brunt, HR professionals agree.
However, there are things that employees, managers and HR teams can be doing to help.
The federal budget, presented late last year, outlined plans to cut nearly 40,000 public service positions by 2028-29. Since then, many public servants in various departments and agencies across Ottawa have received workforce adjustment notices.
While receiving such a notice doesn’t necessarily mean an employee will be laid off, it does create uncertainty, Tara Azulay, co-CEO of Ottawa-based HR consulting firm Clariti Group, told OBJ. And that uncertainty could lead to reduced productivity.
“When people think they might be losing their jobs, they go into survival mode … for organizations expecting that it’s going to be business as usual and that their productivity is not going to take a hit is really unrealistic,” Azulay said.
She’s seeing “a noticeable increase in execs being provided with outplacement services,” and says that senior leaders may be hardest hit by layoffs and experience identity loss and anxiety, all while continuing to lead their teams.
“A lot of executives have been with their organization for a long time and probably haven’t job-searched in a long time. For some people, that identity loss hits a lot harder at the senior level, because that’s who you are.
“Executives operate at a higher level. They have more responsibilities and can sometimes feel that they need to appear fine while, privately, they’re panicking,” Azulay said.
Jesika Arseneau, founder of Ottawa HR firm Forge & Haven, agreed, saying leaders need to feel supported.
“It has a cascading effect. If (leaders are) feeling disengaged and unable to lead their team, who is also (navigating) uncertainty, that’s just going to grow across the whole department,” she said.
Plus, employee worries go beyond job security, which used to be a hallmark of the federal public service. “There are long-term expectations for what their pensions are going to look like. The sense of stability that has always been tied to government work has been completely disrupted,” Arseneau said.
When a large organization such as the federal government starts looking at layoffs, the way things are handled will set the tone, said Andrea Greenhous, CEO of Ottawa’s Vision2Voice Communications.
“One thing that's really important for organizations to understand is that layoffs can really harm an organization's effectiveness. The intended gains of layoffs, which is usually cost savings, are not achieved because of the collateral damage, the people left who are upset, stressed and don’t know what’s next. It destroys trust.
“The layoffs will affect the public service in the long run (with the government’s) brand as an employer. People want to work for an organization they can trust and whose values and actions align with theirs. When you have layoffs done poorly, people are not going to want to work for you,” Greenhous said.
Lydia Di Francesco, workplace wellness specialist and CEO of Fit + Healthy 365, told OBJ that she’s been giving workshops at federal workplaces since late last year on navigating change.
“It seems like there has been some proactive nature on the part of HR teams to equip employees and leaders as best as possible, given the uncertainty,” she said, adding that HR professionals and team leaders need to be diligent about how they handle next steps.
“The key thing is you want to maintain, as a leader, trust with your employees. Trust takes a long time to build and it can be broken really easily,” she said.


