There are many stakeholders in severance management, but the focus is usually on those directly affected and the line managers and HR decision-makers who have to make and implement this strategic decision. The dismissed employees are sometimes given extensive Outplacement programs offered for reorientation.
However, redundancies are also drastic experiences for the remaining employees (survivors). These so-called survivors are usually given too little attention. Yet they are the ones who are crucial to the future success of the company. Committed and motivated employees are vital, especially in times of crisis.
The following are common consequences for survivors:
Feelings of guilt, additional workloads, anticipated unemployment, career slumps, loss of control, increased competition and pressure to perform, survival strategies (opportunism), inner resignation, ...
According to a recent study by the Johannes Kepler University (JKU) Linz the staff cuts are even having a negative impact on the health of those who have not been made redundant. Within a year and a half of the cutbacks, there were 2.4 percent more prescriptions for medication and 12.4 percent more sick days per quarter among the remaining staff.
The effect of so-called "layoff survivor sickness", i.e. the delayed, longer-term reactions to a layoff, has been investigated in various studies since the 1960s. Surprisingly, however, according to one Study by Kienbaum Only 29 percent of the companies surveyed have a retention management system for the remaining employees.
What can a company do to reduce the negative consequences of a reorganization?
Important in the Planning phase of personnel reorganizationsto carry out a stakeholder analysis and to plan and implement measures for all stakeholders based on this. Survivors will react very differently to the reorganization and it is therefore important to define measures that help to rebuild trust. The focus should be on the following areas in particular:
Leadership: Managers must try to be more of a leader than a manager and be even more present and accessible than they already were. The following leadership tasks are becoming important: communicating, listening, leading, appreciating, involving and coaching.
Communication: You can never communicate too much during a downsizing. Developing a solid change story with a focus group and communicating proactively, respectfully and appreciatively is essential.
Job and process optimizationThe dismissal of a colleague usually has a significant impact on the workload of their colleagues. It is therefore important to optimize jobs and processes at an early stage with the involvement of those affected, even if the overload is only temporary.
Retention Management: The very effective measures naturally also include instruments such as remuneration, training, etc., in order to value individual performance in the crisis situation and strengthen the resilience of employees.
Conclusion: The "survivors" must be the main focus of all personnel reorganization, even if "only" a few people have to be let go. The better the changes are prepared and accompanied, the faster those remaining will return to their original level of productivity and health effects will be reduced.
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