to plot a move somewhere else within a year, said a survey by Perceptyx Inc., a workplace analytics company. Companies that don’t factor in such losses could end up with fewer workers than anticipated, making morale even worse. Organizations are also bleeding experience and knowledge every time an employee walks out the door. Those costs add up, especially when managers must inevitably hire again, which is a challenge when labour shortages are expected to persist for years.
Of course, there are often good financial reasons why companies might need to cut jobs. Markets shift, revenue sources appear and disappear, economic hardship bites, and executives are forced to make hard decisions. For companies headed toward bankruptcy, job cuts are necessary to rein in costs. But implementing layoffs just to put on a cost-cutting show is a different matter. Company impacts aside, poorly thought out cuts have disturbing consequences on the health of workers who have lost their jobs.
“Layoffs kill people, literally,” Pfeffer said. People affected by downsizing are 2.5 times more likely to commit suicide, he said. They are also at higher risk of death in general, withover 20 years, according to one study. That might be because layoffs cause huge amounts of stress, which go on to trigger physical health conditions.
And then there are the financial impacts. Getting laid off doesn’t just hurt income in the short term, but it can cut earnings for the rest of people’s careers. Workers laid off in the 1980s ended upRecommended from Editorial
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