Beware the multiplier effect

Citation

(2009), "Beware the multiplier effect", International Journal of Productivity and Performance Management, Vol. 58 No. 6. https://doi.org/10.1108/ijppm.2009.07958fab.002

Beware the multiplier effect

Article Type: News From: International Journal of Productivity and Performance Management, Volume 58, Issue 6

There is evidence that firms that have to lay-off staff in a recession lose doubly because the remaining workforce loses security and motivation and labour productivity declines. (There is also recent evidence that the stress of being in the firing line for potential layoff is very high, but that the stress of actually being laid off is actually – perhaps surprisingly – lower. It seems the threat is worse than the reality. Managing all this is not easy – but you have to do what you can by being open and honest and trying to work with, rather than against, your workforce.