Redundancy can 'impact on morale'

Date: 19/01/2010

While compulsory job losses in recent months have not hit as hard as they did in the 80s and 90s, a number of organisations have still cut permanent staff numbers by the thousand and this has had an inevitable impact on employee motivation, according to a new report.

The study by Contractor Calculator concluded that permanent employees who remain after such "purges" suffer from survivor syndrome, feeling guilty for keeping their jobs at the expense of redundant friends.

Situations like this inevitably result in falling morale and can have a knock-on effect on the lowering of productivity and performance, meaning that team building conferences or incentives and recognition may be the answer to such problems.

This is because it is a two-pronged problem as job cuts can also create reduced loyalty, the publication added, meaning that employees move on at the earliest opportunity when the up-turn finally comes around.

Allowing more people to work from home is another great way to boost morale in the workplace, according to a recent survey by oneDrum.com.

Posted by Michael Ewing

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