Restructures at work could make workers less productive in the long run. (File photo) Photo: 123rf
Many organisations are overlooking the cost of job insecurity in the workplace when aiming to boost efficiencies.
Business consultancy Baker Tilly Staples Rodway said restructuring could make teams less productive in the long run.
Associate Felicity Salter said restructuring was often unavoidable, but the financial logic of reducing headcount could be undermined if the remaining workforce became more cautious, less collaborative and less engaged.
"We see higher levels of absenteeism, higher safety incidences, and sometimes those incidences aren't reported because there's that fear of losing their job in an already uncertain environment.
"We're seeing lack of innovation and lower performance as well, which is a bit counterproductive.
"You'd sort of expect people to perform higher in these conditions, to safeguard their roles. But that's not actually what we're seeing."
She said global studies showed a rise in job insecurity resulted in a drop in productivity.
"Other studies indicate that insecure employees are more likely to hoard knowledge or hide information to appear indispensable, which is linked to reduced company performance.
"There is also evidence across multiple industries that insecurity erodes people's sense of autonomy and control, lowering engagement, dulling innovation and reducing their willingness to invest time and energy into their roles."
Still, Salter said there were ways to balance right-sizing a workforce without destabilising the teams that needed to be retained.
"Business leaders needed to be aware of warning signs, with practical steps to mitigate any fallout."
She said communication was critically important, along with real engagement with staff, support programmes, and a focus on ensuring compensation policies were up-to-date.
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