Employer “Loyalty” not Impressive to Layoff Survivors


Corporations are mistaken to think that employees who survive layoffs will “work harder out of gratitude,” according to a study by Leadership IQ. In fact, by their own admission, employees say their companies should expect less from them going forward.

The Washington-based research company says nearly three-quarters of employees who held on to their jobs amid downsizing acknowledge that their individual productivity is declining, while nearly seven in 10 say their company’s product or service lines are in decline since the layoffs. The research is based on interviews with about 4,200 workers at roughly 320 companies that have enacted layoffs during the past six months.

Other key findings:

87 percent are less likely to recommend their company as a good place to work.

64 percent say their colleagues’ productivity is declining as well.

81 percent claim customer service is falling.

77 percent “see more errors and mistakes being made.”

61 percent forecast “worse” prospects for their company’s future.

Coupled with an earlier Leadership IQ report, this paints a bleak picture for talent-hungry companies. It reveals that 47 percent of high-performing employees are actively seeking other jobs, compared with 18 percent of low performers and 25 percent of middle performers.

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