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Laying staff off 'affects morale'

Published: Friday, 19 December 2008   Category: Life after graduation

Managers should think twice about making job cuts as over-enthusiastic cut backs can create problems in the future.

Research by US firm he Kenexa Research Institute found that employees in firms which had made lay-offs in recent months felt insecure about the future of the firm, reports Management Issues.

Staff were also more doubting of management, with a third of people whose companies had laid off workers in the past year feeling confident in their senior leaders.

Commenting on the findings, Jack Wiley, executive director at Kenexa Research Institute, said: "After the chaos of downsizing, it is imperative that leaders work hard to re-instil confidence in the viability of the organisation, as well as set up support systems for work stress."

Jim Hillage, director of research at the Institute for Employment Studies, recently stated that people who have been out of work for a long period can find it difficult to find work again.

He noted that this was especially true of younger workers.

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