The technique a company uses in handling layoffs affects its corporate brand, as well as that company’s future ability to attract employees. This is Andersen’s primary finding in a recent survey conducted with Vault Inc.
“The survey results show that companies are not handling layoffs well and, in fact, may be eroding their brand and their reputation as an employer,” insists Chris Ryan of Andersen’s human capital practice in Chicago, in a press release. “Ex-employees will be more likely to buy products from the company, [or] recommend the organization as a good place to work or rejoin at a later date, if the company communicates the reasons for the layoffs effectively and handles them in a manner that treats departing employees with respect and dignity.”
Here are the key findings from the national online survey of more than 1,200 workers who were recently cut:
“Given the shortage of talent we are bound to experience again when the economy rebounds, companies that downsize need to consider the repercussions on their ability to attract and recruit new talent in the future,” said Ryan.
According to Andersen, former employees felt especially dissatisfied when they:
Andersen claims that employees who were laid off under these circumstances were more likely than others to take legal action or consider other ways of hurting the company.
On the other hand, employees felt more positive about the situation if they believed the reason for the layoff was the economy or their personal performance.