Wellbeing Meets Separation: Navigating the Emotional Impact of Job Loss

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Written by: Eva Haussmann, Head of people and leadership

Introduction

When we think of employee wellbeing, we often imagine a thriving, productive workforce that contributes to the success of a company. Companies that prioritize the physical, mental, and emotional health of their employees see not only happier individuals but also higher levels of value creation. So, when the topic of job separations arises, it can feel counterintuitive to associate it with wellbeing. After all, job loss is often seen as a negative event. However, the truth is that separations—whether voluntary or involuntary—can have a profound impact on an individual’s wellbeing, both for the person leaving and those who remain.

Job loss is one of those life events that can be as disruptive as other major life transitions, such as marriage, the birth of a child, or the passing of a loved one. It’s a pivotal moment that, if not handled with care, can leave long-lasting emotional scars. The emotional toll can be significant, from feelings of rejection and loss to anxiety about the future. This is why it’s so important for companies to approach separations with respect and compassion, ensuring that employees who leave the organization do so with dignity.

The Survivor’s Guilt: A Concern for Those Who Stay

It’s not just the individuals who lose their jobs that need support during a separation. The employees who remain—often referred to as the "survivors"—can also experience significant stress and emotional impact. Survivor's guilt is a real phenomenon, where employees who are left behind might struggle with feelings of guilt for keeping their job while others were let go. They may also experience a dip in morale or feel uncertain about their own job security.

Maintaining the wellbeing of all employees during a separation is crucial to ensuring the long-term health of the organization. This is where a well-thought-out separation process can make all the difference. According to the KIZ (Kriseninterventionszentrum or crisis intervention centre) in Zurich, one of the primary reasons individuals seek crisis support is because they are grappling with the emotional impact of losing their job. This shows just how deeply job loss can affect one's mental and emotional state.

Separating with Respect: What It Means to Do Right by Employees

Although job separations are sometimes necessary—whether due to financial strain, restructuring, or a shift in strategic direction—they are not easy. And while they may be part of a healthy business cycle, they are rarely painless. Handling separations the right way is crucial to maintaining employee wellbeing.

Here are some key considerations that can help soften the blow for those who are being let go:

1. Separate in a Respectful Way

One of the most fundamental aspects of a healthy separation is ensuring that the process is done respectfully. It's essential to treat the departing employee as a valued individual, not just a resource being removed from the organization. A respectful separation can go a long way in helping someone maintain their dignity, even in a difficult situation.

2. Be Transparent and Honest

While it’s natural to want to cushion the blow of bad news, it’s important to be transparent with employees about why the separation is happening. Providing clear and honest reasons helps eliminate confusion and resentment. Avoiding jargon or vague language that can come across as impersonal or evasive will show respect for the employee’s intelligence and dignity. People need to understand the "why" behind the decision, which can help them process the situation more constructively.

3. Give Employees a Say in Their Exit

Allowing employees to have a say in how their exit is handled can help give them a sense of control in an otherwise uncontrollable situation. This can include how the news is shared with the team, whether the employee wants to make an announcement themselves or have the line manager communicate it. Providing some autonomy in this decision shows that the company values the person’s voice and respects their role in the organization.

4. Offer Support for the Transition

Providing tangible support for employees during their transition can make a significant difference. This can include offering outplacement services to help them find a new job, providing a reference letter, or giving advice on job searching. These actions show that the company is committed to helping employees land on their feet after departure and is not simply closing the door behind them.

5. Provide Financial Support

A loss of income is one of the most stressful aspects of job separations. Offering financial support to bridge the gap, such as severance packages or extended health benefits, can provide much-needed relief during a period of uncertainty. This kind of support can ease some of the anxiety associated with job loss, allowing the individual to focus on finding a new role without the constant pressure of financial instability.

The Main Differentiator: Dignity in Departure

The key to a successful job separation lies in how the individual leaves the company. While the reasons for parting ways may vary, the approach taken can significantly impact how the person views the experience. Will they feel devalued, or will they leave with dignity and respect?

Companies that handle separations with care, transparency, and empathy create a culture of trust, reducing the emotional impact on both those leaving and those staying. By offering clarity, autonomy in how the news is shared, and support for the transition, organizations can ensure employees depart on positive terms, fostering a resilient and compassionate workforce.

We’d love to hear your thoughts on this. How have you seen companies manage employee separations in a way that, while always challenging, minimizes the negative impact on wellbeing? Feel free to share your comments below.

About the Author:

Eva is a consultant and advisory board members of Wellbeing designers. As mental health champion and HR professional she is an advocate for human centric workplaces. You may also want to check out the first wellbeing designers podcast if you want to learn more about Eva and her experience in creating and implementing wellbeing strategies.

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Learn more: Eva Haussmann