Posted on Thu, Oct. 22, 2009

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Layoffs' effect on workers, employers lasting

BY RICHARD PACHTER

Miami Herald

The effects of layoffs on individuals have been well documented. The trauma of being forcefully separated from job, friends, co-workers and company leaves painful, lingering scars. But the aftereffects of a layoff, or multiple layoffs, also have widespread and lasting implications and manifestations for the survivors, which extend throughout the organization.

It’s super-easy to heap scorn on what remains of a company as it strives to become leaner and meaner following the ‘‘right-sizing,’’ which is not always a result of incompetence or malevolence. Companies are composed of people. The complex and conflicted set of feelings that managers and associates must process can be troublesome — or fatal.

Author and professor Noer likens it to Elizabeth Kubler-Ross’ five stages of grief felt by survivors after a death: denial, anger, negotiation, depression and acceptance. Noer also compares it to the emotions felt by survivors of disasters, natural or otherwise.

Despite it all, the challenge is to persevere in the face of guilt, fear and more. He writes: ‘‘Layoff survivors carry heavy emotional baggage, and unless they are given the opportunity to drop it, they are unable to progress beyond their debilitating funk.’’

Clearly, perseverance is not enough. The goal of any business is to make money, not just survive. In this turbulent economy with continuing waves of layoffs and a tentative recovery that lacks job growth, the challenges are ongoing. Some firms may remain untouched, but the pressure to cut costs, outsource labor and remain competitive is ongoing.

Noer ably describes the array of scenarios that organizations face as they go through layoffs. He also examines the diverse characters and personalities at play.

Though his focus is largely on organizations, rather than the individuals, a constant thread is that the changes in the economy are global and extend from the top to the bottom of every firm and every stakeholder. No one can escape, though many try.

He writes: ‘‘I have a friend, now in his third organization, who reports feeling less enthusiastic with each successive move. When it comes to life planning, his scarce and marketable skills, good network, and interviewing savvy ironically have made it easy for him to rebound. He has not taken the time to deal with his survivor feelings, take stock of what he really wants to do, or come to grips with the reality of the new employment contract, which calls for a more autonomous, less dependent employment relationship.’’

That’s the core of Noer’s advice: There’s no point in pretending, hiding or suppressing. Our global economies are changing and the paternalistic corporation is dead. The presumed contract between employer and employee has been broken (if it ever truly was in effect). The changes are real and probably permanent.

The end of one thing means the beginning of something else. It’s not fair, pleasant or deserved, but it’s real. Noer’s wise and honest approach can help that recovery.

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