The shock of mass lay-offs is only the beginning for companies

  • 📰 IrishTimesBiz
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 77%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

The shock of mass lay-offs is only the beginning for companies via IrishTimesBiz

After the initial shock has passed, however, are employers aware of the long-term consequences of their actions? Sandra Sucher, co-author of The Power of Trust: How Companies Build It, Lose It, Regain It, points out that research shows lay-offs have a detrimental effect on employees and corporate performance. “The reason why mass lay-offs don’t end up paying off is that they destroy trust within an organisation,” she says.

A friend at a major tech company was on a Slack chat with 15 colleagues, working to solve a bug. Then 12 of the group were fired. The Slack chat died and the problem went unresolved. “You don’t just replace that history, that conversation, that expertise,” he says. Downsizing a workforce by just 1 per cent can lead to a 31 per cent increase in voluntary staff turnover the next year, according to researchers at the University of Wisconsin-Madison and the University of South Carolina.

Workers who choose to stay, knowing that hard work and good performance will not guarantee employment, might be more likely to do the bare minimum or be less innovative when a company needs it most. All of this hits profits in the long run.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines