Healing the Wounds: Overcoming the Trauma of Layoffs and Revitalizing Downsized Organizations

10.2. From Long-Term to Situational Employment Relationships

Organizations operating under the old contract assumed employees would be there over the long haul. They rewarded tenure with trinkets such as tie bars, watches, wall plaques, recreational services, and benefit plans that increased in value with employee tenure. Today organizations are reaping what they have sown. Because of the success of these strategies in establishing long-term commitment, many organizations, public and private, now have an aging, nondiverse, locked-in workforce. This is true throughout the world, but particularly apparent in Western Europe and Japan. As the recession deepens, many will defer retirement, and their survivor sickness will linger with them. Attempting ...