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Layoffs And The Stress ResponseThe cost of laying off employees.
 Due to the
stress associated with layoffs it has had a psychological impact on many businesses. Many research studies have shown that negative emotions such as fear, anxiety, and sadness go with workplace stress. These emotions have a negative effect on workers’ emotional and mental state, and performance. The judgments and decisions executives and managers can become skewed or unstable under stressful conditions, especially if a company is focused on numbers. The companies that have survived rough economic times in the past are those that manage their human capital assets well. These companies will do better than those than who focus on other things. Poor human capital management leads to inadequate strategic thinking and decision making. Recent research shows that there is a relationship between poor work performance and the negative climate produced by layoffs, usually referred to as “layoff survivor syndrome”. Layoffs not only create stress for employees who are laid off, but also for those who stay behind. The generally held belief is that anxious workers will perform better, but in reality the reverse is true. Research has shown that people who experience prolonged job stress face two times the risk of having a heart attack as non-stressed workers. In organizations where employees have been laid off it is assumed that who are still employed need little or no attention. Based on survey data survivor employees want two things from management: competent management (competence to lead through a crisis) and caring management (humanistic behavior). Many organizations believe by laying off employees it would reduce costs dramatically, but this is an overestimation. Only 30% of organizations that laid off employees increased productivity and profits over a 3 to 5 year period. Managers who are responsible for implementing layoff experience a great deal of stress. Since the economic recession more than 50% of managers have reported stress-related symptoms, according to ComPsych, a EAP company in the U.S. Leon Grunberg, a sociologist at the University of Puget Sound who conducted a long term job stress study among managers, reported that managers were reporting stress symptoms up to 3 years after layoffs took place. Read more here Posted by: suhujitha on 2009-09-08 12:09:51 Next post: High levels of burnout among UK family doctors, especially in group practice 2012-01-31 08:59:19 Other posts tagged stress, mental health, employee engagement, survivor syndrome, morale:
Don't forget: there is a search box on every page! Recent Posts:High levels of burnout among UK family doctors, especially in group practiceDepersonalized doctors: A cross-sectional study of 564 doctors, 760 consultations and 1,876 patient reports in UK general practicePosted by: mara on 2012-01-31 08:59:19 Majority groups support assimilation -- except when they are not majoritiesIt is hard to integrate a society to maintain minority identities and not make the majority feel their values are being rejectedPosted by: danica on 2012-01-29 11:06:21 Color-coding, rearranging food products improves healthy choices in hospital cafeteriaLabeling all foods and beverages with a simple red, yellow and green color scheme to indicate their relative healthiness led patrons to purchase more of the healthy itemsPosted by: danica on 2012-01-25 16:56:28 If you plan, then you will accomplish... but it helps to have a friendPartnering up or planning with someone can really boost the likelihood of sticking to your resolutionsPosted by: mara on 2012-01-05 09:18:08 Sky light sky bright -- inside your officeNew LED ceiling mimics sky, natural lighting for improved mental healthPosted by: danica on 2012-01-04 11:20:24
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