Impact of Layoffs on an Organization

1. Impact of Layoffs on an Organization It is a misconception that layoffs affect only those employees who have been discharged of their duties. The truth is that sudden dismissal of employees due to any reason(s) leaves an impact on the organization in more ways than one. For example, when employees were laid off at Sapient, the organization had to face undeserved flak which could have resulted in a loss of confidence among existing employees too. To counter this, the management at Sapient had reassured the remaining employees by explaining the rationale of the decision so that each individual feels secure about their job within the organization. Similarly, there are several other ways that an organization gets affected because of layoffs. Some of the effects such as restructuring, new employees joining in, a division shutting down etc are quite visible; while other consequences such as emotional impact due to losing a co-worker or rise in stress-levels due to an increased workload as a result of downsizing may go unnoticed. Therefore, those at the top echelons of an organization should be careful about how layoffs are going to affect the organization and be ready to resolve issues that may arise because of it. Below is the list of most common ways an organization gets affected because of the mass firing of employees. ●Loss of productivity and morale When co-workers are shown the exit door, it undermines the sense of security and trust of the remaining employees too. It leaves them with the uncertainty looming large in their minds that they could be next. This anxiety affects the morale and efficiency of the employees negatively, thus resulting in loss of productivity. ●Loss of talent

2. As witnesses to layoffs, the employees left behind may lose their confidence in the organization and start looking for better options where they can get job security and not just a pay-check. This may result in losing some really competent workers who have been retained because they were capable enough. The chances of existing employees heading for greener pastures increase even more if the layoffs have been brutal i.e. there was no notice-period given before laying the employees off or the reasons explained behind dismissals are too flimsy to be believed. Remember that job security is even more important than a big fat pay-check and any cautious employee would take measures to prevent situations where he or she may lose it. ●Interrupted workflow Employees work as a team in an organization and many times the different types of work done by employees in a team are parts which helps complete a project as a whole. When this chain of work is broken, it affects the flow of work. As a result, your employees may need to either catch up with what has been done by those who have left the organization or start from zero. This results in loss of time and sometimes even frustration among employees. If you have been among the employees who have been retained in an organization, what was the effect of layoffs on you and your remaining colleagues?Impact of Layoffs on an Organization Source Url: https://sapientindiareviews.wordpress.com/2019/07/16/impact-of-layof fs-on-an-organization/