Preserving Workplace Harmony amid Layoffs and RTO

Employees at companies undergoing layoffs or return-to-office (RTO) mandates reported committing more acts of incivility (67% and 63%, respectively) than those at companies not undergoing such changes, according to the SHRM Q1 2025 Civility Index.

For HR leaders, this poses a serious challenge: How can they navigate necessary workforce changes while maintaining a respectful and engaged culture?

One possible answer lies in creating opportunities for employees to build friendships in the office and discover their place in life beyond work, fostering shared connections and perspectives that can positively influence the workplace.  

Workplace Disruptions and the Rise of Incivility

Companies across industries are undergoing significant structural changes as layoffs and RTO mandates alter the way employees work and interact. Closures and restructurings are driving recent layoffs across sectors, according to outplacement firm Challenger, Gray & Christmas. However, this is not necessarily due to declining profits. In many cases, companies have remained profitable but are adjusting their operations to stay competitive as technology and market demands evolve.

At the same time, many employers are shifting away from remote-work policies. From 2023 to 2024, the percentage of mostly in-person workers went from 34% to 68%, according to a report from McKinsey & Company. The federal government has also joined the long list of private organizations that have brought employees back to their desks in the last two years.

These workforce shifts are not just operational changes. They affect company culture, employee morale, and day-to-day interactions.  

Data from the SHRM Q1 2025 Civility Index reveals a clear pattern: The average number of uncivil acts is higher in RTO-mandated workplaces and layoff-impacted workplaces than in organizations without these disruptive events. 

The Cost of Incivility

Workplace incivility is not just an interpersonal issue. It also has real financial consequences for organizations. U.S. workers who have personally experienced or witnessed incivility at work reported losing an average of 36 minutes of productivity per act. This same group of workers also reported “that they intentionally took an average of about 1.6 days away from work over the past month due to incivility,” the report stated. Combining the dip in productivity and absences, the total daily cost of incivility reached approximately $2.13 billion. 

These losses come at a time when companies need to be more agile than ever. Industries are evolving rapidly, and organizations that cannot maintain productivity and employee engagement risk falling behind. 

The modern artificial intelligence movement is a prime example of how quickly change happens. In 2020, OpenAI was beta testing the learning model GPT-3. Five years later, AI has permeated major firms, reshaping workflows and business strategies across industries.

As organizations navigate workforce transitions, maintaining a respectful and engaged workplace is essential. A culture of incivility does not just hurt employee morale, it directly impacts an organization’s ability to remain competitive in a fast-changing world.

Curbing Incivility in Uncertain Times

Employers making decisions to restructure or bring employees back to in-person work are making strategic choices for long-term success. However, these transitions can also disrupt workplace culture if they are not handled with care. To protect the benefits of these decisions, leaders must prioritize employee engagement and workplace relationships. The right culture can support productive, harmonious workplaces that reduce acts of incivility, which directly benefits the bottom line.

The Power of Workplace Friendships

One of the most effective ways to prevent workplace incivility is to help employees form strong social connections. When colleagues feel a sense of belonging, they are more likely to navigate disagreements with understanding rather than conflict. In fact, 78% of professionals said they feel that work friendships provide positive mental health benefits, according to a recent KPMG survey. These respondents also said they feel that “these relationships help them feel more engaged (83%), satisfied on the job (81%) and connected to their workplaces (80%).” 

Employers can’t force friendships, but they can ensure the work environment is conducive to making human connections that go beyond work-centered conversations and meetings. To accomplish this goal, they can: 

• Evaluate current company culture through the lens of human connection. Are there moments and instances throughout the week that help bring employees together? This could look like co-workers taking time before or after meetings to chat about topics not related to work or stopping in the break room to catch up with each other.  
• Incorporate employees’ personal interests into the workplace. Whether it’s PowerPoint parties on niche topics led by employees or ad hoc gatherings centered on a randomly suggested learning opportunity, finding common ground beyond the shared mission of work can help build bonds between employees and bring more empathy into the workplace.
• Encourage small but meaningful interactions. Encourage managers and meeting leads to take time to break the ice before getting down to business, setting an example for finding commonality with each other.

Supporting Employees Beyond the Workplace

Work friendships are not always in reach, and that is OK. Differences in lifestyles and interests can make it challenging for some co-workers to build connections at work. For these employees, engaging in personal hobbies can provide an outlet for stress and help keep workplace conflicts in perspective. In fact, those with certain kinds of hobbies report higher career-related self-efficacy. In other words, hobbies can help build your belief in your own abilities, translating to career satisfaction and employability.

This is especially important when there are differences in, say, opinions on social issues or cultural backgrounds. An employee likely won’t have as much bandwidth to focus on differences when they’re thinking ahead to the kitschy pasta bowl waiting for them at their ceramics class. Hobbies also have a spillover effect on work, helping employees reach a flow state in which creativity can be applied to complex business problems.

Employers can take steps to ensure organizational culture supports employees’ hobbies and interests outside of work.

• Recognize employees’ achievements outside of work. Build recognition of employees’ lives outside of work, whether they’re helping coach their child’s sports team or they successfully completed a course in fiber arts. Shout out these achievements in company communications such as newsletters or internal messaging platforms. 
• Provide flexibility for personal interests. Especially in an RTO environment, employees can use flexibility to leave work early to attend a child’s event or take time off to travel for a special interest conference.
• Consider hobbies when planning total rewards. Rewards offered to employees for occasions such as work anniversaries or small wins throughout the year can include a variety of options for employees to choose from to support their hobbies. Giving employees a choice in their rewards, even just by offering a credit to redeem on a gift card platform, can help support their pursuits outside of work.

Workplace Culture That Supports Success

Incivility in the workplace comes at a cost. Productivity declines, morale suffers, and the ability to retain top talent weakens. Employers can’t eliminate all of the key differences that sometimes lead to tension, but they can shore up employee engagement through a robust company culture that supports social ties between co-workers and encourages pursuits outside the office. 

As organizations navigate these challenges, the SHRM Q1 2025 Civility Index serves as a critical resource for understanding workplace trends as well as informing strategies to foster more respectful and productive workplaces. Employers that invest in a culture of connection and flexibility will not only curb incivility but also position their organizations for long-term success.