Cheap approach to redundancies costs employers dearly

by 31 Mar 2009

The current round of downsizing by employ ers is not achieving desired results, with em ployee morale, motivation and productivity diving after most retrenchment programs, ac cording to research from Drake International.

The research found that 40 per cent of re maining staff became less motivated after their employer downsized and 41 per cent said that their respect for their employer had declined.

Findings also revealed that 46 per cent of remaining employees were less likely to recommend their employer to a colleague seeking a job.

The research found that employers are doing themselves long-term damage by not managing downsizing effectively, according to Drake strategic manager David Edwards.

Downsizing should be an opportunity to improve productivity and reduce waste, and not just a cost-cutting exercise, he said. “Or ganisational restructure should be about work ing smarter by changing processes and re designing job roles, the survey reveals, however, that most employers expected to achieve downsizing benefits by asking staff to work harder,” he said.

The survey, which took in more than 6300 employees and managers who have expe rienced downsizing in their organisations, found that although many employers were changing processes and job roles, pro ductivity increased in only 21 per cent of cases.


Most Read