Downsizing: Understanding Its Lasting Effect on the Downsized

The economic turmoil this country has engaged in over the past decade has created a new demographic of employees. The new demographic is the individual who has experienced downsizing and is subsequently "reentering" the workforce. This created the need to understand how downsizing can affect these individuals' resolve past the initial occurrence of downsizing is critical to the workplace. As the number of individuals that experience downsizing increases so does the need to learn factors that motivate, how best to communicate effectively, and the necessary leadership that can provide the essential tools to reacclimate these individuals successfully into the workplace. The ability to create such a dynamic is required in order to create employee loyalty. This research utilized an exploratory quantitative methodology that incorporated a Likert Style survey design to examine the perception of the downsized individual pre-, during and post-downsizing. Specifically, the study conducted tested whether these individuals perceived downsizing as having a positive impact on their lives, a negative reflection of their job performance and whether it would influence their ability to trust and/or be loyal to their current employer. There were 47 completed surveys utilized to determine if there was a significant difference. The results indicated that there was a significant difference in all three areas. The participants' responses supported insight into their perception that downsizing offered them the chance to seek new opportunities. Additionally, they did not see downsizing as a negative reflection of their job performance. Lastly, they did not see downsizing as impactful to their ability to be trusting and/or loyal to their current employer.