The Effects of Downsizing on Layoff Survivors in Dutch Organizations : A quantitative study on the effect of communication and perceived fairness on survivor syndrome and turnover intention

The current global recession and difficult economical situation threatens the competitive position of organizations. The Dutch economy is closely linked to the global economy resulting in a situation which forces Dutch companies having to take measures in order to reduce costs and to survive in the market. One of the strategies to reduce costs is downsizing. This thesis provides insights in the effects of downsizing on survivors and indicates which measures managers should take in order to reduce survivor syndrome. Downsizing is an emotional impactful intervention not only for laid off employees, but also for remaining employees. In many cases, organizations take good care of employees who have to leave. However, the surviving employees' emotional feelings hardly receive any attention, which can lead to the development of "survivor syndrome". Organizations often forget that survivors are those who have to realize the organizational goals after downsizing process. Managers are able to influence the feelings of survivors and reduce survivor syndrome and voluntary turnover by providing open communication and increase the degree of perceived fairness.