Massive Layoffs, Survivor Guilt, and Justice in the Age of Quarantine
The Covid-19 epidemic spawned the largest job losses since the Great Depression, culminating in an April 2020 unemployment rate of 14.7% (1). May 2020 job additions surprised analysts, at 2.5 million, and were mainly in the hospitality and retail sectors that were hurt most by the virus quarantines across the U.S.
Even with the better-than-expected jobs report for May, companies face pressure to hold on to what slim profits remain (2). More than 30 million have lost their jobs, so resources are slim and prices are falling at a pace never seen before in the U.S. More than 80% of the lost positions appear to be furloughs, temporary reductions.
Much focus has been placed on those who have lost their jobs, and rightly so, given the extreme economic difficulties. Those who keep their jobs may find themselves with unexpected form of negative feelings, though.
Survivor guilt can lead to imposter syndrome, questioning your capability and feeling pressure to prove you were worthy of keeping. Research shows that layoffs lead to higher turnover, lower trust, lower job satisfaction and lower organizational commitment (3). Researchers also suggest, though, that survivors of layoffs not jump to the conclusion that your employer is heartless and ruthless. Instead, analyze the situation and how layoffs were handled and if people were given complete information, treated fairly, and handled with respect. That can tell you more about what it's like to continue working for that company than the need for layoffs.
A feeling of fair treatment can help employees not only understand why their jobs were kept (or why they as individuals were kept) amid layoffs but helps them feel more committed to the continued work to help the organization to be successful. True, commitment can come from the feeling of owing the company for keeping your job, but that is not necessarily a bad thing. Global consulting company The Boston Consulting Group (BCG) suggests that layoffs be based on merit as much as possible, and that employees who remain should be dedicated to the organization's success going forward (4). That might include high costs for not being committed and reaching goals. Companies should clearly communicate the vision and next steps, and involve employees in the planning. There is an 'aftermath' of firings that has to be managed just like the process of the layoffs.
Topics: Layoffs, Survivor Guilt, Job Satisfaction, Organizational Commitment, Justice, Equity, COVID
Student Discussion
Have any students been laid off before? How did it feel? How could management have better supported you?
References
Casselman, B. (June 5, 2020). What to Make of the Rebound in the U.S. Jobs Report. https://www.nytimes.com/2020/06/05/business/economy/jobs-report.html
Cox, J. (May 13, 2020). Stock market has the richest valuation in 18 years even as profit outlook worsens.https://www.cnbc.com/2020/05/12/surge-in-layoffs-is-unlikely-to-help-profits-no-matter-what-the-market-thinks.html
Managing Survivor Guilt. The Boston Consulting Group. https://www.bcg.com/documents/file15442.pdf
Torres, M. (Feb. 27, 2020). The Feeling You Get After Surviving Layoffs Has A Name. https://www.huffpost.com/entry/layoffs-survivors-guilt-quit-job_l_5e5698efc5b6fc7a9e38d6b1