Toxic Employment
When work is making you sick & tired of being sick & tired; Outrage at workplace disfunctionality & inefficiency

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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