THE RIPPLE EFFECTS OF LAYOFFS

 


What is layoff?

A layoff, or cessation of workers' employment, is at times a temporary suspension but often a permanent termination of employees from their jobs in the organization. ( Mujtaba & Senathip, 2020)

Layoffs can have a big impact on employees, two main categories affect this decision in an organization, such as;

  1. Employees who are going to be laid off
  2. Remaining employees

Employees who are going to be laid off


Layoffs can have a big impact on them and their families also, we can consider these impacts both financially and emotionally.

 Financial Impact

  • Loss of income –This is the most immediate concern. Laid-off employees will need to find a new job to start bringing in money again.
  • Difficulty finding a new job -Depending on the job market and the employee's skills and experience, it may take some time to find a new position. This can lead to financial tension.
  • Loss of benefits -Health insurance, retirement plans, and other benefits typically come with a job. Losing a job can mean losing these benefits as well.

Emotional Impact

  • Stress and anxiety -Losing a job can be a very stressful experience. Employees may worry about how they will pay their bills, support their families, and find a new job.
  • Anger feeling- Some employees may feel angry or annoyed towards their employer for being laid off.
  • Loss of confidence -Being laid off can damage an employee's self-esteem and make them feel less confident in their abilities.
  • Recognition In society- especially in the Sri Lankan context, reduce the recognition and reputation of the person and categorize as the “person who lost the job”. It is directly harm to people & families as well.

Remaining Employees:

Even employees who aren't laid off remain in the organization after the effect of the layoff. They may experience:

  • Increased workload & the remaining employees may have to pick up the workload of those who were laid off.
  • Decreased work affection -Layoffs can create a negative and uncertain work environment, and negative affection to work.
  • Fear of job security - can make remaining employees worry about their job security in the future.

 

Action taken to that can help employees who are going to be off

  • Direct to job bank – Direct the way to find suitable opportunities in the existing market.
  • Post Surveillance – Surveillance for the suitable period until settlement in new recruitment
  • Suitable compensation- This might be sufficient to cover day-to-day expenses routine investment, and monthly pension allocation for the suitable period until new recruitment.
  • Support groups - There are many support groups available for unemployed people. These groups can provide emotional support and advice on how to find a new job.

 

References

Mujtaba, B. G., & Senathip, T. (2020). Layoffs and Downsizing Implications for the. Scientific Research Publishing.


Comments

  1. R S C N RamanayakeApril 11, 2024 at 9:28 PM

    Layoffs stance significant challenges, inducing uncertainty and financial strain among workers while impacting morale and productivity. Critical evaluation of workforce needs by HR and line management is essential to identify those to retain and offer layoff packages. Transparent communication and comprehensive support, including financial compensation and career transition assistance, are vital for mitigating adverse effects and maintaining a positive organizational culture

    ReplyDelete
  2. G K A N AbeywickramaApril 12, 2024 at 9:24 AM

    This article offers a thorough analysis of the knock-on consequences of layoffs, including both the psychological and immediate cash costs to impacted employees. It also draws attention to the difficulties that the surviving staff members have in the wake of layoffs. It also provides helpful advice on how to help laid-off workers get through this trying time.

    ReplyDelete
  3. Shakeer [E222873]April 13, 2024 at 12:23 AM

    This article provides a compassionate look at the ripple effects of layoffs, emphasizing the significant impact on both affected employees and those who remain in the organization. By highlighting the financial and emotional challenges faced by laid-off workers, it sheds light on the human side of corporate decisions. The practical actions suggested, such as directing to job banks and providing support groups, offer valuable support for those navigating unemployment. Overall, this insightful piece underscores the importance of empathy and proactive measures in mitigating the adverse effects of layoffs on individuals and communities.

    ReplyDelete

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