Tuesday, 3 February 2009

Take Care of Employees Who Are NOT Fired

Imagine a company making a good thirty percent of its employees redundant. Should it try to give the redundant employees as good a deal as it can afford? If you think the answer is a no-brainer yes, think once again. According to this article in the Time, the employees who are not fired will suffer from survivors’ guilt and their productivity will suffer. Does that mean more money should be spent on the seventy percent who are NOT fired, to ease their guilt, may be at the expense of the thirty percent? After all, they will be staying on and the company should be on their good books, shouldn’t it? In any event, this makes nasty economic sense, doesn’t it?

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