Question

Question(s): Do you feel that the following statements are true or false? Explain your views.

1. Employees who think the layoff process was handled fairly are more apt to recommend the company to others and to return to work if asked.

2. Employees who survive a layoff and stay employed with the company also evaluate the fairness of the downsizing process.

Answer 1

1. Layoff differs from hiring because layoff is termination based on economic conditions. It is true that that the employees who think that the layoff process was handled fairly will recommend the company to others and return to work if asked. The company should ensure that they have a valid business reason to be going ahead with the layoff and it should also be clear that other alternatives like going on a freeze in hiring are not feasible. If the company makes the layoff process transparent by letting the employess know the criteria and the situation, then it is possible that even those who are laid off would give a positive recommendation to others and return to work later if asked. This is because the employess become aware of the situation and understand that there is no other way out for the company.

2. Employees who survive a layoff usually tend to believe that the downsizing process was fair primarily as they were not laid off. But this does not mean that the fear would be built in them about the prospect of them being laid off if they slack off in their job responsibilites. The environment in the company would be different from before and the retained employees would also understand the need to constantly upgrade their skills which would ultimately increase their productivity and the profits of the firm.