A redundancy is always tough. Despite the best intentions, the company you’ve once led into financial safety just won’t be the same anymore. One study even shows that restructuring can have a significant impact on employee well-being.
Learn how redundancies can affect the “survivors” of the company below.
According to a study made by Leadership IQ, “74% of employees who kept their job amidst a corporate layoff say their productivity has declined since the layoff.” Around 87% responded that they would be less likely to recommend the company as a great organization to work for following a redundancy.
After a period of downsizing, envoys will be hit hardest with the psychological impacts. Feelings of anger, guilt, sadness, and frustration can make them less productive and weaken ties with the company.
Building trust and credibility within your team is crucial to keep their motivations and morale at a stable footing. Managers who can conduct layoffs with compassion and leaders who can consistently manage the workforce following a downsizing will yield the real cost savings.
Are you planning a redundancy in the Philippines? Do the right preparations with Lee Hecht Harrison, a global talent consulting agency with over 400 offices in more than 70 countries. Our league of career coaches and consultants, backed up by the company’s 50+ years of experience in the industry, puts your layoff plan in good hands.
LHH Philippines helps individuals in building better careers, better leaders and better businesses.
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