The Bleeding Continues

Eli Lilly slashes 5,500 jobs. Opel cuts 10,500 jobs in Germany. Though the world-wide recession seems to be ending, the layoffs continue. What should you do if you’re company is faced with the prospect of cutting your workforce? Layoffs can have a devastating impact on your organization. The costs are often greater than any short term savings. What companies often do not realize is the impact layoffs have on their organization and their surviving employees. In a survey conducted by Leadership IQ, a training and research firm, they found some sobering results. The company’s survey of 4,172 workers who kept their jobs after a layoff found:  75% of layoff survivors say their productivity has declined while customer service has also declined  64% say the productivity of their colleagues has declined  77% say they see more errors and mistakes being made  61% say they believe their company’s future prospects are worse  69% of surviving workers believe the quality of the company’s products or services has declined As might be expected from surviving workers who have witnessed a layoff, the majority said they have feelings of guilt, anger, and anxiety, perhaps explaining the decline in productivity and the finding that 87% were less likely to recommend their organization as a good place to work. Layoffs mean losing experienced workers, damaging the organization and impacting future recovery.

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