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Ryan Nelson Professor Resente ENG 101 Sept 30, 2012

Layoffs: From a Business and Moral Perspective

While considering the psychological and emotional effects that can occur as a result of a termination, an issue of morality arises. Should employers be responsible for minimizing the impact of these events? Evaluation from multiple angles of the issue is necessary to arrive at a definitive conclusion. This involves examining the reasons employees are dismissed in the first place, in addition to the psychological effects that can result. With all things considered, a solution can be formulated which can help prevent these events from profoundly impacting those who arent necessarily at fault. To say that jobs are competitive in todays society is an understatement. The perpetually elevated level of job competition in conjunction with ongoing economic recession places a heightened degree of stress on those trying to maintain positions, and others who are trying to obtain them. Hardly anyone is in the safe zone. The scary truth is that there are thousands of qualified job seekers whom would be more than willing to take that large stack of work off of the hands of the gainfully employed. As if the ebb and flow of the American economic machine is not sufficient cause for stress, a substantial number of employees across the

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nation hold an even larger burden of discomfort when considering the possibility of termination. Terminations stem from multiple causes, but tend to relate to poor performance on the job, insufficient communication among colleagues, lack of reliability, or company downsizing. Terminations are classified as firings when the reason for dismissal is within the power of the employee to control. If someone repeatedly deviates from expected professional standards within their workplace, they could be next on the chopping block. Most firings are carried out based on a quantitative assessment, or examination of the extent of the number of standards violated. Layoffs on the other hand are related to the monetary standing of an organization, and are typically initiated in order to cut costs. Those who are laid-off typically have no control over any aspect of the situation. Regardless of the reason for dismissal, many employees who are relieved from their duties often depart without a severance package , and sometimes even unemployment. It is also not entirely uncommon for employees who have been with a company for as many as 20 or more years to be discarded with such seemingly small reciprocation in accordance to how loyal theyve been to their employer. In conjunction with these financial and ethical concerns, what is often unseen is the profound psychological damage that can be incurred by those who fall victim to termination. Consider that one study found that for every percentage point change in the unemployment rate, up or down, the national suicide rate rose or fell in tandem (Uchitelle 372). The psychological effects of termination can be daunting, eye opening, and a very real hit

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to the overall psychological state of being. A long tenure on the job can often cause an employee to fall into the comfort of assuming that the position and paycheck will simply always be there. This feeling of security is further heightened by being well-respected, known for doing a good job, and through gaining social acceptance from fellow colleagues. One of the harshest aspects of terminations is that they are often so unpredictable, and can therefore shatter this sense of security in a sudden and traumatic manner. Once employees are struck with the realization that their livelihood could be in jeopardy, a ripple effect can result which impacts each individual to a variable degree. It is very likely that the this stigma will result in detriment to emotional health. For those who truly rely on their vocation to provide for themselves and their families, losing a job isn't simply comparative to having the floor drop out from under ones feet. This could, for some, mean quite the opposite: losing the roof over ones head. Many psychologists have documented a wide range of debilitating ailments in many who are terminated, and the degree of psychological fallout caused by these stressors often varies among individuals. An undertone of depression is a common theme which can be observed in many who have lost their jobs. In addition to depression, the feeling of having ones world rocked can be extremely frightening, and provoke feelings of instability which result in a downward spiral of selfdoubt, lack of self esteem, decrease in motivation, and a hit to confidence. Some psychology professionals describe the resultant feelings of inadequacy as chipping away at human capital (372). Dr. Theodore Jacobs, a prominent New York psychologist addressed the issue

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of psychological effects of layoffs. Jacobs concluded that the impacts of the layoffs result in lack of motivation for some individuals when it comes time to seek new employment. He notes that They give themselves a lot of conscious reasons why they cannot accept this job or that job, but deeper down they dont want to face the rigors and anxieties of work and the fears they wont be up to it and they will be dropped again (372). The bottom line here is that whether you are fired or laid off, being dismissed from work increases vulnerability to conditions one might otherwise not experience. This fact leads to a controversial question. Should employers be obligated to adhere to a more strict set of guidelines which will promote an easier transition from being employed, to unemployment? If so, under which circumstances should these guidelines apply? Perhaps the best solution can be uncovered through examination of each termination on a case by case basis. As alluded to earlier, when an employee is fired, there is typically just cause. Some additional examples of just cause include employees whom are insubordinate, those who are not-quite earning their paychecks due to performance issues, those who simply do not mesh well with the other employees in the workplace, and those with reliability issues such as attendance, or lack of communication and/or inadequate documentation practices regarding duties performed. Under these circumstances, a business owner can ethically justify dismissing an employee from their organization, and quite frankly, they really arent obligated to feel bad about it. On the other hand, if a company is downsizing, they tend to view staff layoffs as a business move to compensate for monetary losses incurred, and may not be in tune with

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the personal destruction they could be causing to each released employee. An employer in almost any modern sector of business typically has the upper hand on the situation due to the current status of the economy, and new and highly qualified employees seem to come a dime-a-dozen. Therefore, the degree of empathy offered to an employee who is let go for performance reasons is often negligible. This is ethically unjust. Under circumstances such as these, there should lie an inherent responsibility for the employer to ease the employees transition to unemployment, whether they are feeling motivated to or not. With all things considered, terminations and layoffs need to be handled with common sense and morality. Morally speaking, if the employee has put up their end of the bargain and meets or exceeds their job description, they just shouldn't be left scrambling to keep the shirt on their back in the event that the company needs to downsize. If an employee, along with his or her family, is being strong-armed into a situation where they may lose their home, or even the food on the table, there absolutely needs to be a system in place to mitigate the possible financial fallout. A viable solution is to arrange a severance package, and also to pay out any accrued sick leave and vacation time. This in conjunction with unemployment compensation will offer a very substantial buffer, and temporary safety net. The severance package will also likely extend the period in which unemployment can be drawn, which can mean the difference between eating or going hungry, or making rent versus being evicted. Additionally, the employer should be responsible for assisting in job placement; and specifically offer documentation and tutorials on job searching. They should also offer to serve as a reliable business reference for any and all positions that the employee applies for

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in the future, until they secure new employment. With a comprehensive system such as this in place, an employer can have a sit down discussion with an employee regarding the layoff and still end the meeting on a somewhat positive note. These employees deserve to have the inner confidence that their former employer will remain supportive until they land a new position. However, if an employee suddenly finds them self jobless due to a situation within their control, they should rightfully be subjected to the full array of consequences that come their way. In the current recession, the odds are always against the employee. This places profound emphasis on the importance of maintaining control of all that one can in times of hardship.

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Works Cited
Uchitelle, Louis. "The Consequences - Undoing Sanity." Acting out Culture: Reading and Writing. 2nd ed. Boston: Bedford/St. Martins, 2011. 370-79. Print.