Differences in psychological and physical health among layoff survivors: the effect of layoff contact

COVID-19-Induced Downsizing and Survivors' Syndrome: The Moderating Role of Transformational Leadership

Downsizing due to COVID-19 (COV-DS) and its consequences on laid-off employees has attracted the attention of many researchers, around the globe. However, the underlying mechanisms that explain the effects of COVID-19 downsizing (COV-DS) on the employees who have survived cutoffs remain underexplored. Grounded in the conservation of resources theory, this manuscript aims to study the causal path through which COV-DS reduces the survivors' affective commitment. The current study proposes the mediation of survivors' job uncertainty, stress, and organizational identification between COV-DS and survivors' affective commitment. This study also posits the moderating role of transformational leadership between COV-DS and both the mediators. The extant study has employed WARPED partial least square WARP PLS 7 and Hayes Process Macro to test the hypothesized relationships. Using the sample of 274 employees from the private sector of Pakistan, it was found that job uncertainty's stress strongly mediates the relationship between COV-DS and survivors' affective commitment. While mediation of survivors' organizational identification was not proven to be significant. However, with the moderation of transformational leadership, both the mediators were proven to be significant.

COVID-19-induced layoff, survivors' COVID-19-related stress and performance in hospitality industry: The moderating role of social support

The COVID-19 pandemic has hit the hospitality industry hard globally, resulting in millions of employees being laid off. Drawing upon the conservation of resources theory, this study aims to empirically examine how and when COVID-19-induced layoff influences employees' in-role and extra-role performance in the hospitality industry. We tested this model by using field data collected from 302 employees and their supervisors in China across two waves. Results revealed that COVID-19-induced layoff increases survivors' COVID-19-related stress, which in turn leads to decreased in-role and extra-role performance. The strength of these indirect effects is mitigated by perceived family support against COVID-19. Unexpectedly, perceived organizational support against COVID-19 intensifies these indirect effects. The theoretical and practical implications of this study are further discussed.

Does size matter? The impact of the size of downsizing on financial health and market valuation

Purpose

Although the management and financial literature is replete with much research looking at the impact of downsizing on the financial health and market valuation of companies employing this practice, there has been very little attention paid to the size of the downsizing effort and its impact. The purpose of this paper is to try and address this lack by looking at companies that downsized in 2008, considering the relative size of the downsizing, and the ongoing financial health and market valuation of the companies.

Design/methodology/approach

The impact of the size or severity of the downsizing event was assessed using various financial measures as well as a measure of market valuation from one to five years after the downsizing event. A data set of 251 companies that were in the Fortune 500 in 2014 and also in the Fortune 500 in 2008, that either did not change or decreased headcount were assessed longitudinally over a five-year period.

Findings

Findings indicate that the size or severity of the downsizing did not impact any measures of profitability or efficiency or market valuation, with one exception. The size of the downsizing event was negatively related to return on investment, one year after the downsizing. On the other hand, the size or severity of the downsizing had a positive relationship on the companies’ ability to have enough cash at hand to cover expenses (current ratio) from one to four years after the downsizing.

Originality/value

This work may provide additional support for the “band-aid solution” theory of downsizing, as suggested by Carriger (2016), downsizing may stop the bleeding but does not address the underlying financial or strategic issue leading to the need to downsize. The hope is that this work will better inform scholars and practitioners, providing a more nuanced picture of the impact of downsizing on corporate financial health and market valuation.

The impact of moderate and major workplace expansion and downsizing on the psychosocial and physical work environment and income in Sweden

Aims: To describe the effect of organizational change (moderate and major expansion and downsizing) on psychosocial work characteristics, physical hazards, and income in a representative sample of larger workplaces in Sweden. Methods: Annual changes in workforce size for the years 1991—1996 were derived from tax registry data. Work environment characteristics were measured in a sub-set of participants from the biennial Swedish Work Environment Surveys for 1991, 1993, and 1995. Income data were derived from national registries. Results: Not all organizational change resulted in a poorer work environment. The number of beneficial outcomes associated with moderate downsizing and moderate expansion in the public sector outweighed the number of adverse outcomes. However, in the private sector the overall effect of moderate organizational change was a poorer work environment. Major downsizing was associated with a better psychosocial work environment for private-sector men and major expansion with a poorer environment for public-sector women and private-sector men. Otherwise, associations between major organizational change and the psychosocial work environment were mixed across sex and sector, although major organizational change was consistently associated with a greater risk of physical hazards. Low income was associated exclusively with organizational downsizing in the private sector. Conclusions: More research is needed to determine whether the work environment can explain observed associations between organizational change and health. Data limitations prevented the authors from examining this in the present study. Their findings indicate that future research on the work environment should pay more attention to physical hazards.

Organizational downsizing and depressive symptoms in the European recession: the experience of workers in France, Hungary, Sweden and the United kingdom

Background

Organizational downsizing has become highly common during the global recession of the late 2000s with severe repercussions on employment. We examine whether the severity of the downsizing process is associated with a greater likelihood of depressive symptoms among displaced workers, internally redeployed workers and lay-off survivors.

Methods

A cross-sectional survey involving telephone interviews was carried out in France, Hungary, Sweden and the United Kingdom. The study analyzes data from 758 workers affected by medium- and large-scale downsizing, using multiple logistic regression.

Main Results

Both unemployment and surviving layoffs were significantly associated with depressive symptoms, as compared to reemployment, but the perceived procedural justice of a socially responsible downsizing process considerably mitigated the odds of symptoms. Perception of high versus low justice was assessed along several downsizing dimensions. In the overall sample, chances to have depressive symptoms were significantly reduced if respondents perceived the process as transparent and understandable, fair and unbiased, well planned and democratic; if they trusted the employer’s veracity and agreed with the necessity for downsizing. The burden of symptoms was significantly greater if the process was perceived to be chaotic. We further tested whether perceived justice differently affects the likelihood of depressive symptoms among distinct groups of workers. Findings were that the odds of symptoms largely followed the same patterns of effects across all groups of workers. Redeploying and supporting surplus employees through the career change process–rather than forcing them to become unemployed–makes a substantial difference as to whether they will suffer from depressive symptoms.

Conclusions

While depressive symptoms affect both unemployed and survivors, a just and socially responsible downsizing process is important for the emotional health of workers.

Unemployment and widespread influenza in America, 1999-2010

Please cite this paper as: Cornwell B. (2012) Unemployment and widespread influenza in America, 1999–2010. Influenza and Other Respiratory Viruses 6(1), 63–70.

Background  Research shows that unemployment reduces access to health care and vaccines and increases financial difficulty, family conflict, and other sources of stress that are known to suppress immune function. In addition, seasonal unemployment rates parallel seasonal influenza activity. Following a theory that argues that macroeconomic conditions affect population health, this paper examines whether there is an association between monthly unemployment rates and influenza activity.

Methods  Data from influenza activity surveillance reports from the Centers for Disease Control and Prevention are combined with information from the Bureau of Labor Statistics on state‐level unemployment rates in the U.S. for the flu seasons between 1999 and 2010. Pooled time‐series cross‐section logistic regression analyses are conducted to examine the effect of the unemployment rate on the likelihood of widespread and/or regional influenza activity in the 48 contiguous states throughout this period. A total of 3712 state‐month observations are examined.

Results  Net of other factors included in the multivariate regression analysis, a one‐percentage‐point increment in the unemployment rate is associated with between a 7·1% and 37·0% increment in the odds of widespread influenza (Odds ratio = 1·21). Likewise, a one‐percentage‐point increment in the unemployment rate is associated with between a 17·1% and 44·7% increment in the odds of at least regional influenza (Odds ratio = 1·30). Results hold regardless of whether time‐varying state‐level characteristics are included.

Conclusions  Higher state‐level unemployment increases the likelihood of regional and widespread influenza activity.

Association between the transition from unemployment to re-employment after abrupt bankruptcy and the depressive symptoms

The study aimed to examine the effects of long-term unemployment and the transition from unemployment to re-employment after abrupt bankruptcy on the mental health of unemployed Japanese. The cases of 96 men and 54 women who were laid off by a large shoemaking company because of sudden bankruptcy in 1998, were examined for one year. The mental health of these individuals was evaluated using a 'self-rating questionnaire for depression (SRQ-D)'. The respondents were categorized by employment transition status into four groups: (1) still employed full-time, (2) unemployment to full-time employment, (3) unemployment to part-time employment, and (4) still unemployed. The prevalence rate of depressive symptoms in the 'still unemployed' group was significantly higher (adjusted odds ratio (OR) = 4.33) than in the still employed group. Moreover, high levels of depressive symptoms were observed in the individuals in the 'unemployment to part-time employment' group (adjusted OR = 4.93). There was no significant risk of depressive tendency among individuals in the 'unemployment to full-time employment' group. The results suggest that the negative effect of re-employment to part-time employment on depressive symptoms is similar to that in long-term unemployment.

Overstretched and Unreciprocated Commitment: Reviewing Research on the Occupational Health and Safety Effects of Downsizing and Job Insecurity

Over the past two decades, a leading business practice has been often-repeated rounds of downsizing and restructuring (also referred to as reorganization, re-engineering, and a host of other euphemistic terms) by large private and public sector employers. Frequently associated with other practices such as outsourcing, privatization, and the increased use of temporary workers, downsizing/restructuring has increased the level of job insecurity among workers as well as leading to changes in work processes (including work intensification and multi-tasking) and management behavior. How has downsizing/restructuring and increased job insecurity affected the occupational health, safety, and well-being of workers, and what measures have employers, unions, and governments taken to address any adverse effects? The authors reviewed international studies of the occupational health and safety (OHS) effects of downsizing/restructuring and increased job insecurity undertaken over the past 20 years. After imposing quality filters, they obtained 86 studies. Analysis revealed that 73 (85%) of the studies found poorer OHS outcomes (using a range of measures). Studies were examined to see whether they provided clues as to the reasons for negative outcomes.

The Changing Workplace and Its Effects

The present study explores the multiple ways employees are affected by pervasive and complex organizational change. Across a 10-year period, the authors surveyed 525 white- and blue-collar workers on four separate occasions during which time the company experienced, for example, a difficult financial period, several large downsizing events, the implementation of new technologies, and a move toward a “flatter” managerial structure. At Time 4, shortly after the organization experienced a substantial economic turnaround, the authors found that most but not all of the job and organizational attitudes returned to Time 1 levels. Many of the measures of health and various indices of the work—family relationship however showed both positive and negative lasting effects. These findings are discussed in light of current thinking regarding worker engagement and the psychological contract between workers and organizations.

Procedural justice and layoff survivors' commitment: a quantitative review

Layoffs are common in today's organizations. Most studies that have examined the correlation between procedural justice and the organizational commitment of layoff survivors have yielded positive correlations, but the magnitude of the correlations varies widely. This study is the first to estimate the population correlation and to identify the primary sources that cause variation in the correlation across studies. The results indicated that justice and commitment correlations can always be expected to be positive. Based on a total sample size of 9080 individuals, the estimated mean population correlation was .34. Variation was primarily explained by attributes of the justice measure where multiple items scales and scales composed of both interactional and procedural justice items yielded higher correlations than single item measures. Therefore, it is important that employers recognize the substantial assuaging affect that procedural and interactional justice can have on survivors' organizational commitment.

Workplace expansion, long-term sickness absence, and hospital admission

BACKGROUND

Downsizing has in previous studies, as well as in public debate, been associated with increased sickness absence. No studies have, however, looked at the long-term relation between workplace expansion and morbidity.

METHODS

We investigated exposure to personnel change during 1991-96 in relation to long-term (90 days or longer) medically certified sickness absence and hospital admission for specified diagnoses during 1997-99 in 24?036 participants with a complete employment record in the biennial national Swedish Work Environment Surveys from 1989 to the end of 1999.

FINDINGS

Accumulated exposure to large expansion (> or =18% per year) was related to an increased risk of long-term sickness absence (odds ratio 1.07 [95% CI 1.01-1.13], p=0.013) and hospital admission (1.09 [1.02-1.16], p=0.017). In this context, odds ratio signifies the change in odds for each additional year of exposure, varying from 0 to 6. Moderate expansion (> or =8% and <18% per year), was associated with a decreased risk of admission (0.91 [0.84-0.98], p=0.012). Moderate downsizing (> or =8% and <18% per year) was associated with an increased risk of sickness absence (1.07 [1.02-1.12], p=0.003). The strongest association between large expansion and sickness absence was in women in the public sector (1.18 [1.08-1.30], p=0.0002), corresponding to an odds ratio of 2.77 [1.62-4.74] between full exposure (all 6 years) and no exposure.

INTERPRETATION

This study confirms earlier findings that downsizing is associated with health risks. It also shows that repeated exposure to rapid personnel expansion, possibly connected with centralisation of functions, statistically predicts long-term sickness absence and hospital admission. Although no conclusions about causal pathways can be drawn from our results, this exposure should be considered in future studies, policy making, and occupational health care practice.

Repeated Downsizing Contact: The Effects of Similar and Dissimilar Layoff Experiences on Work and Well-Being Outcomes

In this longitudinal study, the authors compared 1,244 white- and blue-collar workers who reported 0, 1, or 2 contacts with layoffs; all were employees of a large manufacturing company that had engaged in several mass waves of downsizing. Consistent with a stress-vulnerability model, workers with a greater number of exposures to both direct and indirect downsizing reported significantly lower levels of job security and higher levels of role ambiguity, intent to quit, depression, and health problems. Findings did not support the idea that workers became more resilient as they encountered more layoff events. The authors found only partial evidence that the similarity or dissimilarity of the type of repeated downsizing exposure played a role in how workers reported changes in these outcome variables.

Human costs of organizational downsizing: comparing health trends between leavers and stayers

We studied health-related selection and consequences of an organizational downsizing among 886 municipal employees. Measurements of health indicators were conducted before any rumor of the downsizing and immediately after the downsizing 3 years later. Results of pre-downsizing health showed that those who did not find employment after the staff reductions were older employees with high preexisting morbidity. Those getting a new job elsewhere were younger and had better health already before the downsizing than the stayers. After the downsizing, deterioration of health was most likely in the stayers working in groups of major staff reductions and among the nonemployed leavers. In the reemployed leavers, the risk of increased health problems was lower than in others including employees working in no or minor downsizing groups.

The effects of past and anticipated future downsizing on survivor well-being: an equity perspective

Worker well-being was examined as a function of past downsizing and expectations concerning future downsizing. Data from 1,297 Finnish workers were analyzed using analysis of variance and structural modeling analysis. Having experienced downsizing in the past or anticipating downsizing in the future was associated with elevated levels of inequity, which in turn were associated with elevated levels of psychological strain, cynicism, and absence. There were also direct effects of past/anticipated future downsizing on strain, cynicism, and absence, meaning that inequity only partly mediated the relationship between downsizing and well-being. Moreover, well-being varied as a function of type of downsizing.

[Stress management in manufacturing industries]

Job strain factors and stress management for workers in the manufacturing industries were reviewed in this article. Major job stress factors included high job demands, low job control, low social support, role ambiguity and conflict, the physical, chemical and ergonomics of the work environment, work patterns with work schedule and shift work, and job insecurity regarding future employment. In considering effective stress management plans which counteract the job stress factors mentioned above, it is essential to use an organizational approach in the work environment. For workers in the manufacturing industry, through this approach, it is important to promote more autonomy and activities with increasing job control, to give more clarified roles and responsibilities, to provide a more mutually supportive system with better ways to communicate and to introduce a system giving additional rewards, such as paid holidays for refreshment. Plans are also needed for individuals and groups, such as workers, managers, supervisors and workgroups, regarding education, skill training and mutual training according to the personnel characteristics of each target. In order to make these stress management plans successful in the long term, an actual system for stress management is required, with recognition and support by top management. It is also important to assess the effectiveness and method of each stress management plan with proper measurements.

Effects of chronic job insecurity and change in job security on self reported health, minor psychiatric morbidity, physiological measures, and health related behaviours in British civil servants: the Whitehall II study

STUDY OBJECTIVE

To determine the effect of chronic job insecurity and changes in job security on self reported health, minor psychiatric morbidity, physiological measures, and health related behaviours.

DESIGN

Self reported health, minor psychiatric morbidity, physiological measures, and health related behaviours were determined in 931 women and 2429 men who responded to a question on job insecurity in 1995/96 and again in 1997/99. Self reported health status, clinical screening measures, and health related behaviours for participants whose job security had changed or who remained insecure were compared with those whose jobs had remained secure.

SETTING

Prospective cohort study, Whitehall II, all participants were white collar office workers in the British Civil Service on entry to the study.

MAIN RESULTS

Self reported morbidity was higher among participants who lost job security. Among those who gained job security residual negative effects, particularly in the psychological sphere were observed. Those exposed to chronic job insecurity had the highest self reported morbidity. Changes in the physiological measures were limited to an increase in blood pressure among women who lost job security and a decrease in body mass index among women reporting chronic job insecurity. There were no significant differences between any of the groups for alcohol over the recommended limits or smoking.

CONCLUSION

Loss of job security has adverse effects on self reported health and minor psychiatric morbidity, which are not completely reversed by removal of the threat and which tend to increase with chronic exposure to the stressor.