On Layoffs...
If there is only one major concept that I learned in the HR simulation, it is that layoffs really hurt a company. Faced with diminishing production, my group found itself in an odd predicament; we had extremely high productivity and low employee turnover. With employees wanting to stay with our company, we soon found our company over staffed. In an attempt to save our productivity, we decided to layoff roughly 5% of our entry-level employees.
The next quarter, we were quite stunned to see that almost everything positive had dropped and most negative factors had increased. Absenteeism and accidents rose while employee morale and even productivity took major hits. We expected some negative consequences, but this seemed ridiculous. It really put into context what really happens to a company, such as a major airline, when massive layoffs are instituted. To need to use such action, with all its negative side effects, really shows the desperation of that company.
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