Once Burned, Twice Shy

Once workers are laid off from a job, they’re more likely to quit their next job — and their next, and the one after that and probably the one after that, as well. That’s according to new research from Cornell University’s School of Industrial and Labor Relations, which compared workers’ “quits” prior to and after a layoff and determined that people who’d been laid off were 65-percent more likely to quit subsequent jobs.

They may also be likelier to quit their second, third and fourth jobs after the layoff, Paul Davis, assistant professor of HR studies at Cornell’s ILR School, told Bloomberg BNA. Davis, who conducted the research, studied the work histories of 2,500 people who were laid off to determine what effect the experience may have had on their subsequent careers. People who were laid off tend to feel less committed to their subsequent employers, keep a close eye on the external market and are more vigilant about new job opportunities, he said.

Layoffs are traumatic not just for the people who lose their jobs, but for their colleagues who stay on, Davis told Bloomberg BNA. In addition to having to take on the extra work previously done by those laid off, these employees may also feel resentful toward their employer for how their former coworkers were treated while harboring fear that they could be the next to receive a pink slip. They may also be more likely to look for new opportunities, jumping ship when they can, he said.

Companies faced with the need for cost-cutting should think long and hard before resorting to layoffs and consider alternatives first, said Davis. When a layoff is deemed necessary, he said, HR should be as open and honest with the “survivors” as they can, and explain why they’re critical to the success of the organization.