Wednesday, February 24, 2010

The Layoff Syndrome

We have read about many layoffs in different industries worldwide especially in the west countries in the recent financial meltdown. Despite the economy recovery supported by various economy indicators and statistics, the layoff exercise is still the favorite approach used by many employers in the name of cost cutting.

Layoff is probably the worst nightmare for many employees as the termination of employment would mean a loss of main or probably the only source of income for a lot of people. There are many interesting symptoms among the employees resulting from the so-called “layoff syndrome” witnessed in one of the layoff.

The impacted staffs are in denial stage initially with lot of doubts in their mind when they first received the letter. Criteria for candidates selection not disclosed to the impacted staff further aggravated the situation. It is unbelievable that the layoff happened when some other departments within the company are still recruiting employees and contractors.

The managers involved in the exercise in determining or providing the feedback for the candidate to be laid-off are equally in denial stage, worrying to be blamed by their staff for causing the loss of their employment. Human real characters are also uncovered in this period. Back-stabbing is not unheard of for survival sake. We witnessed personally a selfish manager who refused to fight and justify the existence for the impacted staff for the own benefits. A real disgusting and embarrassing case!

The most disturbing fact is the reorganization took unusually long time of more than 3 months before the organization chart was announced. In this period, the staffs were left with unofficial rumors as their main source of information. Small group discussions or tea break gatherings are popular for the gossip catch-up. The staff productivity was in record low due to the uncertainty and the mind-boggling situation.

Employees including the non-impacted one are busy updating their resumes or updating their online profiles in the professional networking site, or contacting friends or ex-colleagues or even the head-hunters for job search. This is the symptom reflecting the fact employees are anticipating rounds of layoffs in the future even if they are spared in this round.

Farewell lunches for the leaving employees are becoming increasingly common. We had one for a colleague last week and many more are expected in the coming weeks and months. In this period, colleagues are usually more than happy to participate the lunch as a token of appreciation for the leaving colleagues or most importantly for exchange of information. A recent Chinese New Year lunch has an unusual high turn-up rate this year. It is always right to say human tends to be closer in their relationship in the difficult moments.

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