With over 2.4 million employees, the U.S. government is the nation’s largest employer, so news about federal layoffs was bound to send shockwaves into other sectors.

Recent headlines are dominated by buyout offers, early retirement incentives and termination of probationary employees, rocking the federal government’s long-held reputation as a reliable employer.

These events don’t occur in a vacuum. Layoffs are, at times, an unavoidable business decision— but how they’re executed and handled in the aftermath can either reinforce or erode trust.

As private employers brace for economic pressures and face potential talent realignment, there’s one essential lesson emerging: When waves of uncertainty hit, leaders must tap into a robust employee value proposition (EVP) to balance brand integrity with values, culture and offerings fitting workforce needs.

Don’t Let Public Layoffs Become a Private Burden

Previous federal employees are already being recruited by the private sector and even state governments (looking at you, New York). With decades of institutional knowledge and specialized skills, this talent pool presents a major opportunity, but there are important considerations.

By nature, layoffs are unsettling. Most employees are left feeling concerned about job security even if their particular role isn’t impacted. One study found that after layoffs, 74% of remaining employees reported a decline in their productivity and 87% were less likely to recommend their organization as a great place to work.

The federal layoffs teach us how constant whiplash and lack of clarity create mistrust, dampening employee productivity and morale. Ultimately, this approach weakens an employer’s appeal to future candidates when the time comes to continue hiring again.

Chaos Tests Culture; Values Anchor Employer Brand

It may not seem like a priority when budgets are tight, but employer branding is even more important during economic slowdowns. Revisiting company values to ensure they are clearly defined serves as a north star by leaning into consistency through external uncertainty. If values have shifted due to business priorities, be transparent and communicate pivots in a way that still exemplifies how employees help the company reach its goal.

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