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Employee age and reactions to downsizing.

Jessica M Lahner, Bert Hayslip, Tara N McKelvy

    International Journal of Aging & Human Development
    |January 28, 2015
    PubMed
    Summary

    Younger employees and layoff survivors experience more career concerns and job dissatisfaction after downsizing. Older employees and non-survivors show greater resilience, suggesting age and survivorship influence vocational adaptability.

    Area of Science:

    • Organizational Psychology
    • Career Development Studies
    • Human Resource Management

    Background:

    • Organizational downsizing significantly impacts employee career development and well-being.
    • Understanding age-related differences in response to downsizing is crucial for effective HR strategies.

    Purpose of the Study:

    • To explore career development concerns among employees of varying ages following organizational downsizing.
    • To compare concerns between layoff survivors and non-survivors.

    Main Methods:

    • Online survey assessing career concerns using Super's Life Span Life Space theory.
    • Measures included perceptions of loss, job insecurity, distress, social support, and job satisfaction.
    • Sample: 72 layoff survivors and 92 non-survivors.

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    Main Results:

    • Younger employees and survivors reported higher job dissatisfaction and greater career concerns (e.g., Crystallization, Innovation).
    • Younger survivors perceived downsizing as less equitable than older survivors.
    • Age and survivorship patterns influenced psychophysical health and career-recycling tendencies.

    Conclusions:

    • Young survivors exhibit less vocational adaptability and are more vulnerable to downsizing's negative effects.
    • Older employees appear more resilient, potentially due to experience or perceived fairness.
    • Findings highlight the differential impact of downsizing on employees based on age and survivorship status.