Hidden Costs of Layoffs – and How to Avoid Them

Bnet’s Carlos Bergfeld recently posted on The Hidden Costs of Layoffs. Bergfeld clearly outlines five hidden costs in layoffs. Most interesting to me, however, is his finding that “the best types of workplaces often suffer the most.” Recent research from Simon Fraser University found, “Layoffs can be perceived as a violation of the psychological contract between an organization and its employees.” These workplaces can survive, though, by continuing their employee friendly practices.

Clients of ours have proven this to be true. When forced to conduct layoffs as a last resort, these companies continued to invest in their strategic employee recognition programs at the same level. This action clearly communicated to the employees that the company still valued them and their efforts highly. The recognition tool also became a medium for communicating the company’s key messages during these trying times.

Read more about using recognition strategically during an ailing economy.