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

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

CEOs fire workers swiftly and brutally, but such actions have destructive long-term effects for companies and staff

✒ “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.

Goodwill is fragile. Most individuals who thrive at work do more than is asked of them. Mass lay-offs send the message that rather than hiring someone for everything they bring to work and their future potential, they are just a cog in a machine.

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.”