Layoffs kill productivity for remaining workers, study finds

layoffsHeadlines have been blaring news about layoffs across the area. That’s obviously bad news for those who get a pink slip, but it’s also bad for the businesses that let the workers go.

According to a recently released study, 74 percent of employees who survive a corporate layoff say their own productivity has dipped since the cuts.

Leadership IQ, a Washington-based training company, surveyed more than 4,000 workers from 318 companies who were still employed after a corporate layoff in the past six months.BizSense’s anecdotal evidence suggest the same. We heard from several LandAmerica employees before the bankruptcy who said people were talking about the layoffs and weren’t getting any work done. We have not heard from any employees inside Circuit City but would love to.

The study found that:

– 87 percent of serving workers say they are less likely to recommend their organization as a good place to work
– 64 percent say the productivity of their co-workers has also declined
– 81 percent say the service that customers received has dropped
– 77 percent see more errors and mistakes being made

Mark Murphy, chairman of Leadership IQ, said in a statement, “There is a great myth that, following a layoff, the surviving employees will be so grateful that they still have a job that they’ll work harder and be more productive.

“The opposite is usually true.”

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