As the downturn is forcing more firms to reduce
personnel, global companies need to have
plans in place to manage “survivor syndrome”
in order to prepare for the eventual upturn, ac
cording to a report from The Conference Board.
“Survivor syndrome” refers to a marked
decrease in motivation, engagement and
productivity of employees that remain at the
company as a result of downsizing and
workforce reductions. It entails a series
of complex psychological processes and
subsequent behavioural responses. Those
who actually carry out the downsizing are
also “survivors”.
“The downsizing action itself pits a manage
ment team’s interests against employees’ interests
– essentially promoting an ‘us against them’ at
mosphere,” said Stephanie Creary, research asso
ciate in human capital at The Conference Board,
and author of the report. “Survivors will perceive
the lay-offs as either fair or unfair based on the ex
tent to which they believe the decision to layoff
employees was either strategic or impulsive.”
Ultimately, she said the ability of a company
to survive downsizing will depend not only on the
processes that are used in execution, but also on
the level of commitment that the management
team has to re-engaging employees at all levels.
