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Flevy Management Insights Q&A
How should HR professionals address the mental health and well-being of employees during the termination process?


This article provides a detailed response to: How should HR professionals address the mental health and well-being of employees during the termination process? For a comprehensive understanding of Employment Termination, we also include relevant case studies for further reading and links to Employment Termination best practice resources.

TLDR HR professionals should approach terminations with empathy, ensuring legal compliance, clear communication, and offering comprehensive support services to mitigate negative impacts on mental health and maintain a positive work environment.

Reading time: 5 minutes


Terminating employees is one of the most challenging tasks HR professionals face, not only because of the legal and procedural requirements but also due to the significant impact it can have on an individual's mental health and well-being. In today's fast-paced work environment, where mental health awareness is more critical than ever, organizations must approach the termination process with empathy, respect, and a well-thought-out strategy to support the departing employees as well as those who remain.

Pre-Termination Planning and Communication

Effective pre-termination planning is crucial for minimizing the negative impact of layoffs or individual dismissals on employee well-being. HR professionals should work closely with legal advisors to ensure that the process complies with all relevant laws and regulations, thereby reducing the risk of additional stress and anxiety for both the employee and the organization. It is also essential to plan the communication strategy meticulously. This involves deciding on the timing, setting, and the way the message will be delivered. According to a report by McKinsey & Company, clear and compassionate communication during layoffs can significantly mitigate the negative impact on employee morale and mental health.

Organizations should also prepare to offer support services to those affected. This could include access to counseling services, career coaching, and job search assistance. Providing a comprehensive support package not only helps the departing employees to cope with the transition but also demonstrates to the remaining workforce that the organization cares about its employees' well-being, thereby maintaining a positive work culture and employee engagement during challenging times.

Moreover, training managers and supervisors on how to handle termination conversations with empathy and respect is vital. These individuals should be equipped with the skills to answer questions and direct employees to available resources. They should also be prepared to manage their own emotional responses, as these conversations can be as challenging for the deliverer as they are for the recipient.

Explore related management topics: Employee Engagement

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During the Termination Process

The manner in which the termination meeting is conducted can have a lasting impact on the mental health of the departing employee. It is crucial to ensure that the meeting is conducted with dignity and respect, in a private setting, and with a clear and concise explanation of the reasons for the termination. HR professionals should be present to provide support and to answer any questions the employee may have about the process, their benefits, and the support available to them. According to a survey by PwC, employees who feel they are treated with respect and given clear reasons for their dismissal are less likely to experience prolonged negative emotions and more likely to view the experience as a learning opportunity.

Following the termination meeting, immediate access to mental health and well-being support should be offered. This could include on-the-spot counseling services or referrals to mental health professionals. Providing such support not only helps the individual to begin processing the event in a healthy way but also mitigates the risk of negative outcomes such as depression or anxiety.

It is also important for HR professionals to follow up with the individual a few days after the termination to check on their well-being and to reiterate the availability of support services. This follow-up demonstrates the organization's ongoing commitment to the individual's well-being, even after their employment has ended.

Supporting the Remaining Employees

The termination of a colleague can also significantly impact the mental health and morale of the remaining employees. Transparent communication about the termination, while respecting the privacy of the individual involved, can help to alleviate rumors and anxiety. HR professionals should provide managers with guidance on how to address their teams' concerns and how to support them through the transition.

Offering mental health resources and support to the remaining employees is just as important as providing them to the departing employee. This could include group debriefing sessions, access to counseling services, or workshops on managing stress and building resilience. According to a study by Deloitte, investments in mental health and well-being programs can lead to a more engaged and productive workforce, demonstrating the value of such initiatives beyond the context of terminations.

Finally, it is essential to monitor the overall morale and engagement of the remaining employees in the weeks and months following a termination. Surveys, focus groups, and one-on-one check-ins can provide valuable insights into the workforce's mental health status and inform ongoing support strategies. By taking proactive steps to address the well-being of all employees, organizations can maintain a positive work environment and support their teams through challenging times.

In conclusion, addressing the mental health and well-being of employees during the termination process requires careful planning, clear and compassionate communication, and a comprehensive support system. By approaching terminations with empathy and respect, and by providing ongoing support to both departing and remaining employees, organizations can mitigate the negative impacts on mental health and maintain a positive and productive work environment.

Best Practices in Employment Termination

Here are best practices relevant to Employment Termination from the Flevy Marketplace. View all our Employment Termination materials here.

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Explore all of our best practices in: Employment Termination

Employment Termination Case Studies

For a practical understanding of Employment Termination, take a look at these case studies.

Strategic Employee Termination Framework for Professional Services Firm

Scenario: A mid-sized professional services firm specializing in financial advisory has identified issues with its employee termination processes.

Read Full Case Study

Workforce Restructuring for Retail Firm in Competitive Landscape

Scenario: A retail firm is grappling with the challenge of optimizing Employment Termination procedures in a highly competitive environment.

Read Full Case Study

Workforce Optimization in Ecommerce Logistics

Scenario: The organization is a mid-sized ecommerce logistics company specializing in last-mile delivery, struggling with high employee turnover and the associated costs of Employee Termination.

Read Full Case Study

Workforce Optimization in Aerospace

Scenario: The organization is a leading aerospace manufacturer facing challenges with its Employee Termination processes.

Read Full Case Study

Workforce Optimization in Agricultural Sector

Scenario: The organization is a mid-sized agricultural equipment supplier grappling with high turnover and inefficient Employee Termination processes.

Read Full Case Study

Workforce Rationalization in Power & Utilities Sector

Scenario: The organization is a key player in the power and utilities sector facing significant challenges in managing Employment Termination processes.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How can organizations create a supportive ecosystem for employees post-termination to facilitate their transition and maintain a positive company reputation?
Organizations can support post-termination transitions and maintain a positive reputation through a multifaceted approach including Outplacement Services, Alumni Networks, and a Respectful Termination Process, fostering a compassionate corporate culture. [Read full explanation]
What are the latest trends in severance package structures for terminated employees?
Severance package trends now emphasize Enhanced Financial Compensation, Mental Health and Well-being support, and Customization, aiming to aid transitions, uphold employer brand, and maintain staff morale. [Read full explanation]
How is the increasing use of AI and machine learning in HR practices affecting the termination process?
AI and Machine Learning are revolutionizing HR's termination process, enhancing Objectivity, Bias Reduction, Employee Experience, and ensuring Legal Compliance and Risk Management. [Read full explanation]
What role does emotional intelligence play in the termination process, and how can executives develop these skills to handle terminations more effectively?
Emotional Intelligence is crucial for handling terminations with empathy and professionalism, reducing negative impacts, and executives can develop this through self-awareness, empathy training, and emotion management strategies. [Read full explanation]
How can companies leverage technology and data analytics to improve the fairness and effectiveness of the termination process?
Companies can improve termination fairness and effectiveness by leveraging Technology and Data Analytics for objective decision-making, enhancing communication and documentation, and establishing continuous improvement feedback loops. [Read full explanation]
What are the ethical considerations for employers when conducting layoffs in a digital-first workplace?
Employers must prioritize Transparency, Equity, and Legal Compliance in layoffs, ensuring direct communication, fair treatment, and support for affected employees to uphold organizational values and trust. [Read full explanation]
What are the best practices for ensuring data security and privacy during the employee offboarding process?
Best practices for securing data during employee offboarding include Immediate Revocation of Access Rights, conducting Exit Interviews, ensuring Secure Data Retrieval and Deletion, and Continuous Improvement of Offboarding Procedures to mitigate data breach risks. [Read full explanation]
How can companies develop a clear and fair policy for performance-based terminations?
Developing a fair policy for performance-based terminations involves establishing clear performance standards aligned with Strategic Planning, implementing a robust Performance Review process, and ensuring legal and ethical compliance to maintain Organizational Health. [Read full explanation]

Source: Executive Q&A: Employment Termination Questions, Flevy Management Insights, 2024


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