Taking Care of Business After A Layoff

Taking Care of Business After A Layoff

Topic Author: Lyle Hanna

Posted: 10:53 AM Feb 4, 2009

Replies Posted: 0 comments

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Anxiety, fear, distress, frustration, and anger are just a few emotions that spate the culture of a company who has recently had to downsize a percentage of its workforce. During this economic crisis many human resource professionals tend to focus on those who are leaving. Layoffs, however, also significantly affect those who have been left behind. There is a definite negative correlation between employee downsizing and workplace morale.

If fewer workers are obligated to carry the same workload after a downsizing occurs, employee absenteeism and turnover increases. According to an article in the November 2008 issue of HR Magazine, “companies that laid off 0.5 percent of their workforce sustained, on average, an annual turnover rate of 13 percent—a rate 2.6 percentage points higher than the average annual turnover of companies that didn’t cut staff. In other words, five times more workers left on their own than were laid off. The more people laid off, the higher the rates of turnover.” Central Kentucky companies need to move forward and retain their focus on the remaining top performers within the corporation.

Communication is vital to maintaining employee morale during troubling times. After a lay-off has occurred, management should speak with every employee within the company. Precise details pertaining to the company’s struggles should be addressed as well as how the leaders intend to improve the situation. Open communication between employees and upper-level management reduce feelings of uncertainty and insecurity. Informal meetings, CEO casual visits with employees, and company blogs written by executives can ease employee doubt and insecurity. As an engaged employee, you should trust the leadership within your company and remain open and alert to the changes being made during these difficult financial times.

Layoffs afflict every aspect of a company- past employees, current staff, and management alike. If your workplace has recently had to let go of employees try to stay positive; you are still employed and your optimistic and constructive attitude can help your company. Whether you are the CEO or the lowest member on the totem pole, your hopeful outlook is contagious and can help your company lead its remaining employees into the future.

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