HRRecruitingAlert.com » Survey: Layoffs hurt retention, recruiting and productivity

Survey: Layoffs hurt retention, recruiting and productivity

January 20, 2009 by Sam Narisi
Posted in: Firing, In This Week's E-Newsletter, Latest News & Views, Retention

When a company has to cut staff, it often faces new challenges to keep the rest of the organization running smoothly. Here are some ways to minimize the damage.

Post-layoff problems are widespread, according to a recent Leadership IQ survey of employees left behind after a reduction-in-force. The survey’s results:

  • 87% of those employees are now less likely to recommend working at their company
  • 77% say their co-workers now make more mistakes, and
  • 64% say their own productivity has declined.

How can companies get those employees back on track? The key is strong communication during the entire process, says Leadership IQ. The firm recommends:

  • Don’t delay informing employees about the bad news. If employees learn through rumors rather than official channels, it’ll be difficult to regain their trust and commitment.
  • Managers should let their staff vent frustrations about the situation.
  • Companies should be proactive in helping departments find ways to get their work done with fewer people.
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