Economic uncertainty can cause leaders to go into survival mode and look for ways to cut costs. Not surprisingly, one of the most common strategies is downsizing.

On paper, the move makes sense. Reducing the workforce of any organization will have an immediate bottom line effect. However, by embracing this kind of poor practice, the “year of efficiency” – how Mark Zuckerberg invented it in 2023 — could backfire down the road. What is the alternative? Improving cooperation. Increased collaboration between teams and leadership can sustainably increase productivity without requiring extensive disruption.

Getting better effective communication in the workplace will not give immediate final results, which is why many managers return to layoffs. However, layoffs can be detrimental to a company's success. First, they can destroy the culture of the organization and greatly reduce the confidence of employee managers. Once trust is broken, it is hard to regain. As cited in a Harvard Business Review article, job loss is a concern for 85% of people. according to Edelman's research. By making this fear a reality, employers sever their bonds of trust with the people left behind.

Related: Thinking of laying off staff? Here's why job cuts can be bad for your business

Let's talk about those people who keep their jobs. Guilt tends to spread among those who chose to stay. Yes, they may feel relieved, but they may also live with the constant worry that they might be next—or shouldn't have been the ones to stay. This uncertainty slowly erodes their ability to concentrate at work. Plus, it can increase their suspicion that no matter how people-centric their company says, the company will always come back to letting employees go through tough times.

As these seeds of unrest and unrest spread, they can affect employer branding and make it more difficult to source and retain top talent. A researcher from Visier explained that up to 8% of people can leave of their own accord after a layoff, usually within 105 days of the announcement of the layoff; and replacing those team members may not be easy. Good job candidates will always think twice about applying for positions at businesses known for layoffs.

These – and the associated consequences – are why all organizations should consider other approaches, such as different ways to improve communication in the workplace, before downsizing their departments. After all, communication is essential, and more often than not, it doesn't happen efficiently or effectively in any company, including yours.

The link between people communication and business profitability

it's poor communication in the workplace really taking a bite out of your earnings? yes. Eighty-eight percent of knowledge workers' time is spent communicating, according to a 2024 Grammar report. With so much communication going on, any interruption can interrupt productivity. And setbacks are happening. Fully 55% of professionals say they spend too much time creating or deciphering communications, which causes 53% to struggle with anxiety.

Of course, many managers and teams try to mitigate communication errors with meetings. Unfortunately, how points out Otter.aiunnecessary and unproductive meetings can lead to the loss of millions every year. The problem is magnified when you have hybrid and remote employees who make up about 40% of all workers. Successfully coordinating team communication across geographic, time-related, and other boundaries without a plan can be difficult.

In other words, there are probably dozens of gaps in your communication machine. By closing those gaps, you can improve the employee experience and help workers do better work faster. Not only will this improve the speed and quality of everyone's output, but it will also help keep costs down – all without having to lay off a single person.

Related: How to avoid these common communication mistakes in the workplace

How to improve communication in the workplace

If you like the idea of ​​maintaining the morale you've built and the legacy knowledge your employees bring to your organization, start by putting new communication approaches into practice.

1. Create a thoughtful rhythm of team meetings

Feel like you have unnecessary meetings? You're probably right. We are used to arranging face-to-face and virtual meetings as soon as possible. Unfortunately, most encounters don't have a clear end game or goal.

The solution to this issue is to be very intentional about meeting times. For example, start the week on Monday or Tuesday with a team video or one-on-one meeting, depending on your workplace structure. Share what was accomplished in the past week, each person's future goals, and perhaps a personal item. This meeting gives everyone a way forward.

At the end of the week, host one on one meetings with direct reports. These meetings are intended to provide a “mood meter” reading. They are the chance to review project timelines, objectives, deliverables and expectations. Remember that one on one allows you to have a human connection. For example, Adobe introduced Check-in access.which replaces annual reviews with regular one-on-one feedback sessions. This setup increased employee engagement and performance by leaving room for continuous dialogue and feedback. Ultimately, creating these personalized meetings helped create a culture of growth and support within the workplace.

2. Use psychometric tools to reduce communication friction

Use AI and technology to help your people become better communicators. There are now psychometric products that can help employees connect better with each other. Remember that we don't necessarily work side by side anymore. This means it can be difficult to understand how a colleague likes to receive and interpret information. Psychometric solutions can overcome this obstacle.

For example, a psychometric assistant can make pointed suggestions about how to write an email to a specific colleague based on the colleague's psychometric data. The finished email will be more understandable to the recipient, reducing any chance of misunderstanding.

Psychometric tools can also help determine appropriate visuals, audio requirements, and other meeting considerations. By assessing the psychometric needs of all participants, a system can create better ways to engage all participants.

Related: How to harness the power of communication when facing challenges

Leveraging yourself and your team from these advanced solutions promotes empowerment, confidence and authority. It also minimizes your need for it micro-managing. Consequently, everyone can collaborate more effectively in both real and asynchronous situations. After all, better communication is also great for profits, especially since Asana said that 55% of employees in highly collaborative companies report consistent revenue improvements.

Cuts may be necessary, but they are not the inevitable solution to overcome an uncertain economy. Change your communication practices before you let people go. It could be all you need to get more wins and you won't have to deal with the consequences of endings. Best of all, everyone succeeds.