Through The Donington Groups association with Challenger, Gray & Christmas Inc. as a global referral and resource sharing partner we acquired the results of their 2009 Post-Layoff Survey which was released at the 61st Annual SHRM Conference and Exposition. We believe that every organisation no matter how large or small would gain invaluable knowledge by reading this report. Let us know what you think and post us a comment.
According to a new survey, one of the biggest challenges employers must address in the wake of a layoff is keeping the surviving employees engaged and focused. The survey of human resources executives found that 54 percent consider employee-engagement the biggest challenge that companies face after job-cut announcements. The next biggest challenge, selected by 23 percent of respondents, was easing anxiety over the possibility of additional layoffs.
“The risks associated with not addressing these challenges is in focusing only on output which creates a workforce that is motivated by fear of job loss instead of by loyalty and pride. That may work for the remainder of the downturn, but as soon as the recovery begins, the company will undoubtedly experience heavy turnover. Companies recognizing that employee-engagement is the key to continued quality output will not only survive the downturn, but will be poised to thrive when the expansion begins,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
“You cannot simply tell employees to ‘do more with less.’ There must be a back-and-forth dialogue to address employees’ concerns and fears. They must be an active part of the problem-solving process. And, in any situation, honesty is the best policy; employees deserve up-front communication when it comes to the state of the company and their jobs,” he added.
It appears that most companies try to do this. According to the survey, 58 percent said they had department supervisors meet directly with surviving employees to discuss any changes occurring as a result of the downturn and/or layoffs. However, only 12 percent provide post-layoff counselling and about one in ten did nothing at all to address post-layoff issues faced by survivors.
“The worst thing a company can do is nothing. The survivors of a layoff are dealing with a lot of emotions and, in many cases, increased workloads as they pick up the duties of their former colleagues. Many of those who remain after downsizing are stricken with survivor’s guilt. Others are filled with an enormous amount of anxiety, assuming that it is only a matter of time before the other shoe drops. The result of doing nothing in this situation will be low morale, low productivity and, eventually, high turnover,” said Challenger.
In a study of 200 companies be professors at the University of Wisconsin-Madison School of Business, found a positive correlation between layoffs and an increase in subsequent turnover. John Challenger proclaims that “Even in a downturn, companies do not want to be in a position of being understaffed. But being understaffed during an expansion could be especially damaging. At that point, they will be competing with other employers for the best candidates while, at the same time, trying to prevent their current workforce from being poached. How they treated surviving workers in the wake of layoffs will definitely be remembered”.
“Employers should have a plan for dealing with survivors before they make any job-cut announcements. How will workloads be adjusted? How will laid off workers be informed? How will survivors’ concerns be addressed?
“Even details such as the physical layout of the office should be addressed. Many companies overlook this, but it is not hard to imagine the psychological effects of coming into a workspace where large portions of the desks are empty, serving as a constant reminder of downsized colleagues,” said Challenger.
To obtain a copy of the Challenger Post-Layoff Survey Results from 2009 please email us at admin.qld@donington.com.au.
According to a new survey, one of the biggest challenges employers must address in the wake of a layoff is keeping the surviving employees engaged and focused. The survey of human resources executives found that 54 percent consider employee-engagement the biggest challenge that companies face after job-cut announcements. The next biggest challenge, selected by 23 percent of respondents, was easing anxiety over the possibility of additional layoffs.
“The risks associated with not addressing these challenges is in focusing only on output which creates a workforce that is motivated by fear of job loss instead of by loyalty and pride. That may work for the remainder of the downturn, but as soon as the recovery begins, the company will undoubtedly experience heavy turnover. Companies recognizing that employee-engagement is the key to continued quality output will not only survive the downturn, but will be poised to thrive when the expansion begins,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
“You cannot simply tell employees to ‘do more with less.’ There must be a back-and-forth dialogue to address employees’ concerns and fears. They must be an active part of the problem-solving process. And, in any situation, honesty is the best policy; employees deserve up-front communication when it comes to the state of the company and their jobs,” he added.
It appears that most companies try to do this. According to the survey, 58 percent said they had department supervisors meet directly with surviving employees to discuss any changes occurring as a result of the downturn and/or layoffs. However, only 12 percent provide post-layoff counselling and about one in ten did nothing at all to address post-layoff issues faced by survivors.
“The worst thing a company can do is nothing. The survivors of a layoff are dealing with a lot of emotions and, in many cases, increased workloads as they pick up the duties of their former colleagues. Many of those who remain after downsizing are stricken with survivor’s guilt. Others are filled with an enormous amount of anxiety, assuming that it is only a matter of time before the other shoe drops. The result of doing nothing in this situation will be low morale, low productivity and, eventually, high turnover,” said Challenger.
In a study of 200 companies be professors at the University of Wisconsin-Madison School of Business, found a positive correlation between layoffs and an increase in subsequent turnover. John Challenger proclaims that “Even in a downturn, companies do not want to be in a position of being understaffed. But being understaffed during an expansion could be especially damaging. At that point, they will be competing with other employers for the best candidates while, at the same time, trying to prevent their current workforce from being poached. How they treated surviving workers in the wake of layoffs will definitely be remembered”.
“Employers should have a plan for dealing with survivors before they make any job-cut announcements. How will workloads be adjusted? How will laid off workers be informed? How will survivors’ concerns be addressed?
“Even details such as the physical layout of the office should be addressed. Many companies overlook this, but it is not hard to imagine the psychological effects of coming into a workspace where large portions of the desks are empty, serving as a constant reminder of downsized colleagues,” said Challenger.
To obtain a copy of the Challenger Post-Layoff Survey Results from 2009 please email us at admin.qld@donington.com.au.
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