A study of 146 companies that conducted layoffs showed that it often takes years — not months — for engagement, morale, and loyalty to rebound.
October 09, 2024
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While layoffs can lead to short-term financial benefits, research shows just how much of an impact they can have on employee engagement, morale, and loyalty — and how long that negative impact can last. Humanizing the layoff experience can help lessen the impact and set your business up for a more rapid recovery, but remember to go into the decision to do layoffs with clear eyes: There’s no such thing as a quick business win without a human cost to the business, and your rebound is likely to take years rather than months.
In today’s climate, large-scale layoffs are in the news often. The industry being hit the hardest right now is tech, with more than 100,000 roles being cut in 2024 so far, including from large companies like Microsoft, Intuit, and Dell. With such high-profile companies making widespread staff cuts, it’s only natural for leaders to wonder if reducing headcount might be the answer to their business’s woes, too.
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Didier Elzinga is the CEO and founder of Culture Amp — an all-in-one employee feedback and analytics platform, and one of Australia’s fastest-growing technology startups. He was previously the CEO of Rising Sun Pictures (a prominent Hollywood visual effects company), founder of Rising Sun Research (winner of a Technical Academy Award), and non-executive director at Tourism Australia. He is currently a non-executive director at The Atlassian Foundation and The Alfred Research Foundation.
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Amy Lavoie is the VP of People Science Experience at Culture Amp where her team conducts research, using the 1.3 billion data points generated by more than 8,000 organizations. Prior to Culture Amp, Amy was the Chief People Officer at coaching platform Torch.
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