No company is immune to financial hardships. Economic downturns, unexpected crises like the COVID-19 pandemic, or shifts in industry demand can force employers to make tough decisions about their workforce. Two common cost-saving strategies are furloughs and layoffs—but while they may seem similar, they have significantly different implications for employees and businesses alike.

Before finding yourself in a position where such decisions must be made, it’s crucial to understand these differences to make informed and compassionate choices.

Advantages and Disadvantages of Each Option  

Handling Furloughs vs. Layoffs Effectively

Best Practices for Managing a Furlough

• Supporting Employees in Planning Ahead: Provide a realistic timeline if possible.
• Clarify Employment Restrictions: Ensure employees know they cannot perform any work while furloughed.
• Restrict System Access: Temporarily disable work accounts to prevent accidental violations of labor laws.

Furlough regulations vary by state, so it’s essential to consult with your company’s legal counsel to ensure compliance with relevant laws. Additionally, while both exempt and non-exempt employees can be furloughed, the process differs based on their classification.

Understanding Furloughs for Hourly and Salaried Employees

Hourly (Non-Exempt) Employees: Employers can reduce hours or implement a zero-hour schedule without terminating employment. This was commonly used during the pandemic to retain staff without layoffs.

Salaried (Exempt) Employees: Instead of reducing hours, employers may temporarily cut pay or enforce a full furlough. These employees cannot legally perform any work, even small tasks like emails, without requiring full-day compensation.

Furloughs help businesses manage costs while retaining employees, but they must follow legal guidelines for each worker type.

Best Practices for Managing Layoffs

• Understand Legal Requirements: Review laws like the WARN Act and state-specific regulations.
• Offer Severance if Possible: While not required, severance can ease employees’ transitions.
• Communicate with Sensitivity: Be transparent about why layoffs are happening and provide resources for affected employees.
• Support Remaining Employees: Address concerns, maintain morale, and outline a recovery plan.

Final Thoughts

Both furloughs and layoffs can be difficult decisions, but when managed thoughtfully, they can minimize long-term damage to both employees and the organization. Whether you’re an HR leader or an executive making these tough calls, clear communication, legal compliance, and a commitment to employee well-being are key to navigating workforce changes effectively.

Employee detachment is on the rise. Many are holding on by a thread, disengaged from their work yet hesitant to leave. Gallup researchers have dubbed this phenomenon the Great Detachment, and as HR professionals and leaders, you’ve likely witnessed its impact firsthand.

A disengaged workforce doesn’t just affect morale—it erodes productivity, innovation, and ultimately, retention. 79% of employees report feeling work detachment. 56% of employees who reported often feeling lonely at work also say their productivity is negatively impacted by this loneliness. So, how can organizations break the cycle? Here are eight critical steps to reconnect and re-engage employees before detachment turns into departure.

• Check In—And Really Listen

Engagement begins with conversation. Frequent, meaningful check-ins help leaders understand why employees feel detached and what support they need to feel connected. Try asking:

• • How are you really doing?
  • On a scale of 1-10, how’s your work experience right now?
  • How can I best support you today?

By fostering transparent, empathetic communication, leaders create a culture where employees feel valued and heard.

• Build a Listening Strategy

One-off check-ins aren’t enough. Companies need a structured approach to consistently gather and act on employee feedback.

• • Use surveys to assess engagement levels and trends.
  • Publicly share results and outline action plans based on feedback.
  • Equip managers with tools to conduct regular pulse checks.

Listening isn’t just about collecting data—it’s about acting on it to make meaningful change and connection.

• Invest in Growth and Development

Employees stay engaged when they see a future within the organization. A clear career development path, paired with ongoing training, mentorship, and skill-building opportunities, keeps employees motivated and invested in their roles. Once again, this step helps employees feel connected. 

• Recognize and Appreciate Contributions

A staggering 78% of employees report that recognition impacts their motivation at work, yet only 22% feel they receive enough. Simple, genuine appreciation—from a quick thank-you to public acknowledgment—goes a long way in boosting connection and morale.

• Celebrate the Whole Employee

People aren’t just employees; they’re individuals with lives outside of work. Celebrate personal milestones—whether it’s running a marathon, buying a home, or welcoming a new family member. This reinforces that employees are valued not just for their work but for who they are and makes them feel connected.

• Clarify Priorities and Purpose

Disengagement often stems from a lack of clarity. Employees need to see how their work contributes to the bigger picture. Help them connect the dots.

• Empower Managers to Lead Engagement

Managers play a critical role in engagement and connection, yet many are expected to lead without proper support. Invest in their development by providing training, resources, and authority to drive team engagement effectively.

• Ensure Fair Compensation and Work-Life Balance

Money isn’t everything—but it matters. To feel reconnected to work, employees want:

• • Better work-life balance and flexibility (47%)
  • Increased pay and benefits (45%)
  • Clearer communication from leadership (44%)
  • More recognition (34%)

Fair compensation and reasonable workloads lay the foundation for a motivated workforce.

Breaking Free from the Great Detachment

Workplace detachment is a real and pressing challenge. But organizations that take proactive steps to engage employees—through meaningful check-ins, recognition, career development, and fair compensation—will not only retain talent but create a thriving, committed workforce. The best way to counter detachment is by fostering meaningful connections-between employees and their colleagues, their managers, their career paths, recognition, work-life balance, and compensation.

The time to act is now. Engagement isn’t just a nice-to-have; it’s the key to long-term business success.

Reach out to us at HR Synergy with Questions.

PFML Compliance Requirements for Massachusetts Employers

All Massachusetts employers, including those with private or self-insured benefits plans, must provide specific information to their employees in compliance with the Paid Family and Medical Leave (PFML) law.

Poster Requirement

2025 PFML mandatory workplace poster

• All Massachusetts employers must display a PFML workplace poster in a visible location.
• The poster must be available in English and any language spoken by five or more employees.

Employee and Self-Employed Notices

• For 25 or more covered individuals:
  • Employers must distribute a notice informing employees and self-employed individuals of their PFML rights and obligations.
  • 2025 Employer Notice for a workforce with 25 or more covered individuals
• For fewer than 25 covered individuals:
  • A similar notice must be provided with relevant obligations.
  • 2025 Employer Notice for a workforce with fewer than 25 covered individuals
• For self-employed individuals:
  • Employers must provide notices for self-employed individuals, categorized by workforce size (more or fewer than 25).
  • 2025 Notice to Self Employed Individuals from Employers with More Than 25 Covered Individuals
  • 2025 Notice to Self Employed Individuals from Employers with fewer than 25 Covered Individuals
• Notices must be available in English and other applicable languages, with DFML providing translations in 12 languages.

Rate Sheets

• Employers must submit PFML contributions for all employees.
• Contribution rates apply for 2025.

2025 Rate sheet for employers with 25 or more covered individuals

2025 Rate sheet for employers with less than 25 covered individuals

U.S. Immigration and Customs Enforcement (ICE) conducts workplace visits as part of its efforts to enforce immigration laws, specifically targeting businesses that may be employing undocumented workers. These visits are often part of worksite enforcement operations, where ICE officers check employee documentation and compliance with immigration laws. 

Recent workplace enforcement actions have been particularly heightened as part of broader immigration enforcement priorities.

Workplace visits can involve:

• Investigations into Unlawful Employment: ICE may check whether companies are hiring individuals who do not have the legal right to work in the United States. This can lead to audits or investigations of company hiring practices and employee records.
• I-9 Audits: ICE regularly conducts audits of the Form I-9 (Employment Eligibility Verification) documents, which all U.S. employers are required to keep on file for each employee. These audits ensure the company is hiring legally authorized workers.
• Detaining and Removing Unauthorized Workers: If workers are found to be undocumented or without proper authorization, ICE may detain them for deportation or other legal processes.
• Deterrence of Employment Violations: These visits also act as a deterrent to employers who may consider hiring undocumented workers. ICE’s presence serves as a reminder of the legal risks involved.

Now is a good time to conduct an internal audit of your employees’ I-9s to ensure that they are in order in case you are subject to an ICE audit. 

• Confirm you have an I-9 for every active employee at your organization, as well as inactive employees for three (3) years after their date of hire or one (1) year after termination, whichever is later.
• Any corrections must be made in the acceptable manner as stated by ICE.
• If you retain copies of your employee’s documents, you should have copies for all employees, although retaining copies is not required.

For additional information or guidance, please give us a call at (603) 261 – 2402 or send us an email at [email protected].

What To Do To Prepare For an Immigration (ICE) Workplace Visit Checklist

In 2025, compensation trends will continue evolving with a focus on pay transparency, stable but slightly lower salary increases, and a growing emphasis on skills-based pay.

• Moderating Pay Increases: While pay raises remain a key tool for attracting and retaining talent, the rapid wage growth seen in previous years is slowing. Employers plan to increase salary budgets by around 3.7% on average, slightly lower than in 2024. Merit increases are expected to remain steady at 3.3%.
• Pay Transparency & Fairness: With new pay transparency laws in several U.S. states, companies must disclose salary ranges and address pay inequities. Employees increasingly demand clarity on compensation, and perceptions of pay fairness are becoming a key workplace issue.
• Skills-Based Pay: Employers are shifting from role-based to skills-based pay, particularly in high-demand fields like AI and data science. Companies are prioritizing measurable skills over job titles to ensure a strong return on investment.

While compensation trends remain stable, external factors like economic shifts and labor market conditions could lead to adjustments throughout the year.

Read more from our COMPENSATION SERIES:

Is Your Compensation Package Marketable?

The Paycheck Playbook: Key Compensation Trends Shaping 2025

Cracking the Compensation Code: How HR Synergy Can Help

Read more from our previous series -THE EMPLOYEE LIFE CYCLE:

Attract Employees 

Recruitment

Onboarding

Retention

Offboarding