What Can Go Wrong in a Downsizing?

In a word, plenty.  Retaliatory lawsuits.  Social media bashing.  Low morale for remaining employees. Here is an overview of the potentially destructive actions that terminated employees may take.

Retaliatory Lawsuits

Disgruntled employees being terminated may not be satisfied with the severance benefits being provided.  In attempt to get more money, they may seek or file a lawsuit against the company based upon alleged discrimination, harassment, or a number of other legal actions.

Bashing on Social Media

Terminated employees may wish to “get back” at the company through social media, such as through unfavorable service or product reviews, negative blog postings, or other commentary on social media websites such as Facebook.

Low Morale Among Remaining Workers

Most workers understand that layoffs are sometimes necessary.  What workers expect is that if a workforce reduction is required, they will be treated fairly by the company, in part in recognition for their dedicated service.  They want the company to be as dedicated to helping them move forward in their career as they have been in helping the company achieve success.

It’s important to recognize that current workers will continue to speak and interact with workers who are being terminated.  Ideally, terminated workers will have positive comments about the company and the outplacement services that are being provided so that they feel that they are being treated fairly.

When this is not the case, remaining workers can see the writing on the wall as to how they will be treated if they are terminated.  If treatment is not good, they may view layoffs as not only a sign about the entity’s financial position, but also that the company does not care/cannot afford to treat people well.  A workforce reduction then can cause remaining employees to consider whether it is worth the risk of staying with the company if one day they too may simply be shown the door without any outplacement assistance.

How We Help 

Through effective outplacement services, we help accelerate the job search process for workers affected by a reduction in force.  Call us to learn more about our services.