When jobs are cut at all levels, it takes a heavy toll on the workforce. What remains is the so-called “survivor workforce” —that is, those employees of a company who are allowed to keep their jobs after a period of downsizing—but they live under constant pressure from fears about the future.
As a company, how can you prevent employee engagement and motivation from completely collapsing during such a phase? And why might the company’s supplemental health insurance (bKV), of all things, be the key to greater mental resilience and employee engagement? The following blog post explores this question.
1. Mass Layoffs & High Turnover Rates – A Paradox with Consequences
Mass layoffs are rarely the result of a single crisis: rising labor costs, international competitive pressure, geopolitical upheavals, and, as a consequence, tough but long-overdue restructuring measures. The complexity of these challenges intensifies economic pressure and drives massive cost-cutting programs. And because personnel costs are among the largest expense categories, many decision-makers turn to their workforce to cut costs.
When companies make massive job cuts, the remaining employees typically face the following challenges:
- High emotional stress: The remaining employees often suffer from what is known as “survivor syndrome.” It is characterized by feelings of guilt toward laid-off colleagues, fear of further layoffs, and distrust of management.
- Declining Motivation & Work Ethic: The loss of team spirit and the often unclear future prospects lead to a decline in productivity and job satisfaction—in some cases, a massive one.
- Work Overload: Since the tasks of the laid-off colleagues are usually distributed among the remaining staff, the workload increases significantly. Demotivating stress levels inevitably rise.
At the same time, recent labor market and HR studies paint a paradoxical picture: The engagement and motivation of German workers continue to decline compared to the rest of Europe and the world. For example, the latest Gallup study, “State of the Global Workforce 2026,” shows that in 2025, just 20% of employees were highly motivated.
When employees hold back on their performance, it is usually a reaction to their environment: for example, a lack of strategic direction during a crisis, excessive stress levels, and/or weak leadership. Against this backdrop, a direct link can also be drawn between the decline in motivation and the high average number of days of absence in the German economy compared to international standards (approximately 20 days of absence per employee).
How can you maintain high levels of commitment and motivation during such a phase? And what role can workplace health management ( WHM) play in this context to foster greater mental resilience, motivation, and commitment?
2. How to Stay Motivated During Times of Upheaval (Crises).
To successfully lead a company into the future after a restructuring, highly motivated and dedicated employees are essential. Senior management and executives must urgently create the necessary conditions for this, because in times of crisis, measures that foster a sense of appreciation and identity are more important than ever. The following activities are essential in this regard:
Creating Radical Transparency
Nothing undermines motivation quite like uncertainty. When management remains silent, office gossip fills the gaps with rumors and negative scenarios—but rarely with a motivating vision for the future.
Approach: Open communication! Why was the restructuring necessary? What does the future hold for the company? What roles will the remaining employees take on? Only when employees understand the rationale behind change initiatives will they demonstrate understanding and a willingness to perform.
Building Psychological Safety and Leading Actively
Employees who have a subliminal fear of losing their jobs take no risks. They remain in “work-to-rule” mode, with the result that innovation stagnates and productivity declines.
Approach: Especially in turbulent times, companies need an open culture of error tolerance. Only when mistakes are viewed as opportunities to learn—rather than grounds for termination—will courage, creativity, and motivation return. At its core, this is about a leadership culture in which ENCOURAGEMENT is more important than DEMANDING.
Strengthening Employee Health for the Long Term
Constant high work pressure and the underlying fear of losing one's job take their toll. Employees quickly reach their breaking point. Sick leave and employee turnover often increase.
Approach: Workplace health management should not be viewed as merely a “nice-to-have” nor should it be eliminated during times of crisis. Recovery and prevention are essential prerequisites for high-performing and highly motivated teams. Companies that invest in the mental and physical health of their workforce are not only more attractive but also demonstrably more successful financially.
3. Why supplemental health insurance through an employer (bKV) boosts motivation, especially in times of crisis:
“Tailored wellness programs are among the most effective measures for strengthening physical and mental health. They ensure teams’ performance and convey genuine and lasting appreciation.” (Svea Bielert, CEO of FRIEDERBARTH, expert in human resources and organizational development).
Workplace health management encompasses all measures designed to maintain and promote employee health. To achieve this goal, workplace health management is based on three pillars: occupational safety and workplace integration management are required by law. They protect against accidents and help employees return to work after a prolonged illness.
The voluntary component is encompassed by workplace health promotion (WHP). This includes, among other things, ergonomic workplace design and flexible work schedules, as well as supplemental health insurance provided by the employer (bKV), which has been shown to have the greatest impact on sustainable mental and physical health prevention and care. It is precisely in a health concept tailored to the needs of employees that the true impact of workplace health management lies during times of crisis. It increases appreciation and motivation as well as the willingness to perform and productivity of all employees—not least through a significant reduction in absenteeism and turnover rates.
Given the staffing challenges outlined above, it is understandable that supplemental employer-sponsored health insurance (bKV) has experienced a veritable boom in recent months. On the one hand, over 70% of employees expect greater appreciation, respect, and well-being in the workplace. On the other hand, more and more companies are recognizing the high economic efficiency of customized health programs based on bKV.
Why Supplementary Health Insurance Is Indispensable, Especially in Times of Crisis
The bKV is a private supplemental insurance plan for employees funded by the employer. In times of cost-cutting measures and high levels of mental and physical stress for employees, it is, from a strategic perspective, one of the most effective components of strategic and operational human resources management.
When companies invest in the well-being of their remaining workforce following a major restructuring, they send a psychologically crucial message: They shift the narrative from “All we’re doing here is cutting costs” to “We’re securing the future with our best people.”
In addition, supplementary health insurance (bKV) helps alleviate a problem associated with“survivor workforces” that should not be underestimated: rising stress levels and the associated mental strain. In recent years, numerous insurance companies have responded by offering preventive mental health services. These can generally be divided into preventive measures, emergency assistance during crises, and acute treatments. This protects remaining employees from burnout (e.g., due to increased workloads) and protects companies from prolonged absences among their core workforce.
The following list summarizes the key benefits of a supplementary health insurance plan during times of crisis or upheaval:
Staff cuts, intense competitive pressure, and rising costs are a severe test for any company. Yet the motivation and well-being of the remaining teams determine whether the turnaround will succeed or whether the company will slide further into crisis and remain stuck there.
Those who rely solely on pressure now will lose their top performers through voluntary or involuntary resignations. Those who instead focus on transparent leadership, emotional support, and smart, value-adding benefits—such as supplementary health insurance —will build a resilient, loyal, and healthy workforce for the future—the unshakable foundation of positive corporate development.
Sources:
› Appelbaum, S. H., Delage, C., Labib, N., & Gault, G. (1997): The Survivor Syndrome: Aftermath of Downsizing. Career Development International
› Amy Claire Edmondson (2018): *The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth*.
› DAK Health Report 2025 and AOK Absenteeism Report 2025
› https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx