Mass Exodus Because of Rumors
I recently attended a webinar hosted by Drake Beam Morin on communications strategy for reduction in forces (RIFs) and learned an interesting fact. The host said that a layoff of 1% of the company’s employee population may result in up to a 33% turnover rate, if handled inappropriately. This is largerly due to the lack of and/or lateness of direct information to the employees and the hugely insane rumor mill which results.
This is one of those ridiculous things that cost companies a ton of money and can be easily avoided. Why are organizations so afraid of speaking to their employees about organizational change? It can cost an organization anywhere from $20K-$150K to replace a skilled employee. When an employee thinks they may soon be canned, they start shopping their resume. Why risk losing 100 valued employees for a pending organization realignment which might only impact 5 employees. Are you really going to put $1.5M at risk due to shoddy communication and the fear of being direct to your employee population?
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