How to Motivate Sales Team During Layoffs: Strategies for Engagement & Performance

Le recessioni e i licenziamenti sono i momenti più stressanti per tutte le aziende. Se da un lato la perdita di attività e le previsioni di guadagno sono l'ovvio risultato delle turbolenze economiche, dall'altro i licenziamenti tendono ad avere un effetto di aggravamento che può far precipitare ulteriormente la situazione negativa.

A recent study of over 4000 employees who made it through corporate layoffs discovered that the survivors' employee engagement, quality and productivity took a major blow after the layoffs. Over 74% of the respondents said their productivity had dropped, and 64% said their coworkers' performance had also declined.

Layoffs create uncertainty, disrupt workflows, and can significantly impact employee morale—especially for sales teams that thrive on motivation and momentum. When layoffs occur, the remaining sales reps may experience stress, job insecurity, and decreased engagement, making it difficult to maintain productivity.

This guide explores key strategies to rebuild confidence, foster a positive mindset, and ensure sales success—even in challenging times.

Le situazioni di licenziamento

It's that time of the decade when the music begins to slow down, and the markets panic. This time, the situation got exacerbated by companies over-hiring during the Covid-19 pandemic. The threat of a looming recession by the mid of 2023 or the start of 2024 is also a contributing factor for companies going lean.

I dirigenti aziendali tagliano i costi sospendendo o interrompendo i servizi, ridimensionando la forza lavoro e sfruttando al massimo l'efficienza di ciò che già hanno. Di conseguenza, meno persone acquistano prodotti e i team di vendita perdono lead a un ritmo allarmante.

The psychological impact of layoffs on sales teams

Layoffs don’t just affect those who leave—they directly impact those who stay. Sales reps who survive a layoff often face:

• Increased workload: Fewer reps mean more responsibilities, territories, and quotas.
• Job insecurity: Fear of being next can create anxiety and disengagement.
• Lack of trust in leadership: Unclear communication can cause doubts about company stability.
• Lower morale and motivation: Uncertainty can make staying focused and performing at a high level challenging.

Without strong leadership, clear communication, and a structured motivation plan, these challenges can lead to decreased performance, burnout, and higher turnover rates.

How can leaders motivate their sales team during layoffs

Dopo aver gettato le basi sul perché è importante mantenere i team di vendita motivati, esamineremo come farlo.

1. Mantenere un piano di comunicazione solido

Clear, honest communication is one of the most effective ways to reduce anxiety and rebuild trust after layoffs. Sales teams must understand why the layoffs happened, what changes to expect, and how the company plans to move forward.

✔ What leadership should do:

• Acknowledge the impact of layoffs on the remaining team.
• Share the company’s recovery plan to show stability and direction.
• Be available for questions—host open forums or one-on-one check-ins.
• Reinforce the team’s value—remind sales reps that their contributions are critical.

Keep communication strong throughout the process and be prepared to answer questions regarding the layoffs, such as who will take over the domain of the laid-off salesperson, how people are chosen for the layoff, their packages and what the future holds for the teams.

2. Continue building sales skills and capacity

During layoffs, sales teams often focus on immediate survival, but it’s also an opportunity to invest in long-term skill-building and capacity development. A strong sales team isn’t just about hitting short-term targets; it’s about being prepared for future challenges.

✔ How to foster skill development during layoffs:

• Provide continuous sales training to strengthen negotiation, objection handling, and closing techniques.
• Encourage cross-functional learning, allowing sales reps to gain insights from marketing, customer success, and operations teams.
• Offer personalized coaching and mentorship to help reps sharpen their skills.

✔ Why it works:

• Boosts morale and confidence, making sales reps feel valued and future-ready.
• Helps sales teams differentiate themselves in a competitive market.
• Builds long-term resilience, ensuring sales reps emerge stronger from difficult times.

3. Address emotional reactions and support remaining employees

Layoffs don’t just affect those who leave; they also have a psychological impact on those who remain. Some employees may feel relieved, while others experience anger, guilt, or anxiety about their own job security.

✔ How to support sales teams emotionally:

• Acknowledge the emotional impact of layoffs and provide space for employees to process changes.
• Offer one-on-one check-ins to address concerns, validate feelings, and provide reassurance.
• Provide mental health resources, including counseling services or resilience training.
• Foster peer support networks to encourage open conversations and mutual support.

✔ Why it works:

• Helps sales reps move through the stages of grief and refocus on work.
• Reduces post-layoff disengagement, ensuring team members stay productive.
• Builds trust and loyalty, preventing unnecessary turnover.

4. Prevent overburdening remaining salespeople

One of the biggest mistakes companies make after layoffs is pushing too much work onto the remaining sales reps. While some redistribution is inevitable, failing to balance workloads properly can lead to burnout, reduced performance, and higher attrition rates.

✔ How to rebalance workloads effectively:

• Prioritize high-impact tasks—focus on the most valuable accounts and leads instead of trying to cover everything.
• Automate repetitive tasks to reduce administrative burdens.
• Reassign leads strategically, considering each rep’s strengths and capacity.
• Introduce team-based collaboration, allowing sales reps to share workloads efficiently.

✔ Why it works:

• Prevents burnout and frustration, keeping reps engaged.
• Ensures high-quality customer interactions instead of rushed, ineffective outreach.
• Helps sales teams adjust smoothly to new team structures.

5. Maintain a human-centered approach to layoffs

How a company handles layoffs can define its culture and impact future retention rates. Sales reps need to feel that their contributions are valued and that the organization cares about their well-being.

✔ How to maintain a human-centered layoff process:

• Communicate openly and with empathy, ensuring employees understand why layoffs happened.
• Provide transition support for departing employees, such as job placement assistance or recommendations.
• Acknowledge the difficulty of the situation and offer time for adjustment.
• Express appreciation for remaining employees, reinforcing their importance to the company’s future.

✔ Why it works:

• Prevents a culture of fear, ensuring sales reps remain engaged and committed.
• Reduces the likelihood of top performers leaving due to dissatisfaction.
• Helps rebuild trust in leadership, keeping morale steady.

6. Provide professional development opportunities

Layoffs often make employees more focused on future-proofing their careers. Sales reps who feel that they are growing professionally are more likely to stay engaged and committed to the company.

✔ How to offer professional growth opportunities:

• Provide sales training in new domains, such as enterprise sales, SaaS, or key account management.
• Bring in industry experts for knowledge-sharing sessions and workshops.
• Offer technical training in CRM systems, data analysis, or digital tools.
• Create internal mobility programs, allowing employees to explore leadership or cross-functional roles.

✔ Why it works:

• Shows that the company invests in its employees’ growth, even during tough times.
• Increases employee retention, as sales reps see a long-term future with the company.
• Improves overall team capabilities, driving better sales performance.

7. Prioritize innovation and engagement

Layoffs often lead to resource constraints and uncertainty, making it essential to foster innovation and keep employees engaged. Encouraging sales teams to think creatively and take ownership of new strategies can turn challenges into opportunities.

✔ How to encourage innovation and engagement:

• Challenge reps to develop new sales techniques or experiment with outreach methods.
• Encourage collaborative problem-solving, giving employees a say in process improvements.
• Offer quick-hit incentives, rewarding small wins that drive performance.
• Use real-time recognition platforms to celebrate creative solutions.

✔ Why it works:

• Gives sales reps a sense of control and empowerment in an uncertain time.
• Keeps engagement levels high, preventing apathy or burnout.
• Helps the company discover new, more efficient sales approaches.

8. Build resilience within sales teams

Resilience is adapting, recovering, and maintaining performance under challenging conditions. Not all employees naturally possess resilience, but it can be cultivated through leadership, coaching, and structured support.

✔ How to strengthen resilience in sales teams:

• Set attainable short-term goals to create a sense of achievement.
• Reinforce growth mindset principles, encouraging reps to view challenges as learning opportunities.
• Provide consistent coaching and feedback, helping employees navigate difficulties.
• Encourage team bonding activities, building a strong support system.

✔ Why it works:

• Helps sales reps stay motivated despite uncertainty.
• Builds a culture of perseverance and problem-solving.
• Ensures sales teams recover quickly from setbacks.

Qualità che possono aiutare i leader delle vendite a rimanere al top

Mentre la motivazione tiene i vostri rappresentanti sulle spine durante la giornata, il loro morale li aiuta a perseverare nelle difficoltà. Il morale determina la loro soddisfazione ed è la condizione che modella il loro atteggiamento. È essenziale costruire una squadra più forte in modi quali:

1. Comunicazione efficace

Per una comunicazione efficace, è necessario parlare a gruppi più piccoli di venditori per dimostrare loro che sono importanti e più vicini alla leadership. Spiegate con precisione la situazione attuale e le motivazioni alla base delle decisioni. Parlate a tu per tu con tutti i vostri rappresentanti di vendita per far capire loro cosa ci si aspetta da loro e che sono dipendenti apprezzati.

2. Riconoscimento

Spiegate ai vostri venditori che siete consapevoli delle responsabilità e dello stress aggiuntivo che subiranno nelle settimane e nei mesi a venire. Descrivete i vostri piani per affrontare i cambiamenti e il modo in cui cercherete di dare priorità ai compiti aggiuntivi che dovranno svolgere. Riconoscete l'impatto delle vostre azioni, in modo che capiscano che non li state trattando come una risorsa usa e getta.

3. L'empatia

Sulla base di quanto detto in precedenza, mostratevi empatici nei confronti delle loro preoccupazioni per il futuro e di coloro che sono stati licenziati. Chiedete a ogni persona come si è sentita a causa dei licenziamenti e quali sono le sue domande specifiche. La conversazione individuale deve permettere ai dipendenti di sfogare i loro pensieri e le loro emozioni e di fare chiarezza, in modo da non essere soggetti a voci e false informazioni.

4. Attenzione focalizzata

Quando si parla di licenziamenti e dei tempi difficili che ci aspettano, bisogna sempre mantenere un tono positivo e orientato al futuro. Nel breve periodo, i venditori avranno più difficoltà a ottenere contatti e a convertire i clienti. Tuttavia, è anche l'occasione per affinare le proprie capacità nei momenti più difficili e per crescere come venditori.

5. La supervisione

I rappresentanti devono sapere che i dirigenti sono sempre disponibili a discutere delle loro preoccupazioni, domande, prestazioni e futuro. Possono anche interagire liberamente con la dirigenza per imparare a superare i loro ostacoli al successo.

6. Apprezzamento

Mostrate apprezzamento e ringraziate sinceramente tutti i vostri migliori venditori che hanno tenuto a galla l'azienda. Esprimete la convinzione che la loro collaborazione con voi è molto apprezzata e che i loro sforzi saranno ben ricompensati.

Examples on how big companies managed to stay afloat during layoffs

Ecco alcuni esempi di come diverse aziende motivano i propri dipendenti nel bel mezzo del dinamico mercato del lavoro:

1. stile di vita

Produttore di prodotti audio di largo consumo e di oggetti indossabili, l'imbarcazione è uno dei marchi più conosciuti al mondo. L'azienda è consapevole che, per avere una forza lavoro impegnata e motivata, è necessario che si sentano legati alla missione e allo scopo dell'azienda.

Hanno orari extra per le conversazioni con i dipendenti, in modo che la leadership ascolti ciò che i dipendenti dicono.

2. upGrad

upGrad è una piattaforma online per l'istruzione superiore. Offre una formazione rigorosa e pertinente al settore per le matricole, per i lavoratori esperti e anche per chi vuole iniziare una nuova carriera. L'azienda mantiene motivata la sua giovane forza lavoro attraverso sfide appropriate e processi innovativi di apprendimento peer-to-peer piuttosto che con una formazione regolare.

Ritengono che la visibilità dello spazio di opportunità per un lavoro soddisfacente sia la chiave per trattenere i propri talenti. La costruzione di una forte comunicazione con i dipendenti è anche la loro modalità di motivazione.

Empowering sales teams with Compass: Motivation beyond the numbers

In times of uncertainty, sales reps need more than just motivation—they need clarity, transparency, and confidence in their earnings. Layoffs can create doubt and disengagement, making it essential to have a system that keeps sales teams focused, rewarded, and driven. That’s where Compass comes in.

Compass isn’t just another sales performance tool—it’s a game-changer for keeping sales reps engaged and productive, even during difficult times.

• ✔ Automated commission tracking: No more confusion or disputes over payouts. Reps see their earnings in real time, keeping them motivated to close deals.
• ✔ AI-powered nudges: Timely reminders and performance insights help sales teams stay on track and identify opportunities to maximize their earnings.
• ✔ Gamified leaderboards & incentives: Healthy competition fuels engagement, pushing reps to hit milestones, outperform targets, and stay focused on results.
• ✔ Seamless integration with sales tools: No extra admin work—Compass connects with your CRM, so reps spend more time selling and tracking numbers less.

💡 Motivation isn’t just about rewards—trust, transparency, and giving sales teams the tools they need to succeed. With Compass, sales reps stay engaged, confident, and performance-driven—even in times of change.

Want to keep your sales team motivated and performing at their best? Try Compass today!

Conclusione

Layoffs create significant challenges, but strategic leadership, transparent communication, and employee-focused initiatives can keep sales teams motivated, engaged, and productive.

✔ Support skill development to build long-term sales capacity.✔ Address emotional reactions to rebuild morale and trust.✔ Balance workloads to prevent burnout.✔ Offer professional growth opportunities to keep reps invested.✔ Foster innovation and engagement to maintain high energy levels.✔ Strengthen resilience to help sales teams adapt and thrive.

By implementing these strategies, businesses can retain top sales talent, drive revenue, and create a stronger, more motivated team—even in challenging times.