Downsized employee may bring bitterness to new job

705

Dear Joan:
As the owner of a small business I have noticed a phenomenon and wonder if you have heard the same from other organizations.

We have, on occasion, hired individuals who have been downsized (after many years) from large companies. During their hiring process with us, these individuals attempt to negotiate for additional vacation and benefits. As they are not in a managerial or executive position, we have denied additional vacation and benefits as we consider vacation and other benefits a reward for long term employment. They spend the first several months apparently happy to have found employment with a solid, secure small company.

This apparent contentment, however, has not lasted long. They begin to resent not having three and four weeks of vacation and, in some cases, resent their reduced salary. Negativity begins and their initial mistrust and anger with the former company returns and appears to be transferred to our company.

Don't these individuals know that they were downsized because the large companies could either not afford them or could hire someone as competent for less? We are truly considering ruling out these applicants as they bring with them their negativity and paranoia and seem to poison the work environment.

Answer:
Yes, I have heard about this phenomenon for some time. In fact, long before downsizing was common, some employers were reluctant to hire anyone for less pay and benefits than they were accustomed to, because the employee often left for greener pastures or became discontent once the honeymoon was over. For example, it's logical to expect that anyone who has had four weeks of vacation is going to want it again.

The former unspoken workplace contract between employer and employee created an expectation of full benefits, lots of vacation time, job security, promotions every few years and a pension upon retirement. And you're right. Companies found they just couldn't keep that up and stay in business. Unfortunately, some employees just don't get it. They see that the company is making money and they think that more should go into their pay and benefits. The reality is that the cost of staying in business prohibits some of the practices of the past.

There are those who suspect that those who are downsized lost their jobs because they were the ones who became complacent or had an entitlement focus. However, I've seen too many circumstances where that is not the case. A partial solution may be found in careful screening and reference checking.

But let's look at the other side of the issue. Although the obvious problem may lie with the person you hire, your company may be contributing to the problem. For instance, I often find that the more employees complain about salary and benefits, the greater the likelihood that there is a lack of respect, trust, involvement and communication at the core of it. It's almost as if employees are saying, "If you are going to treat me like dirt, you'd better pay me more to get me to stay."

I'm not suggesting that your company is treating people poorly, but I'd look a little closer to make sure that that potential reason is not the cause. For instance, if your managers are somehow communicating the message, "Just keep your mouth shut and be glad you've got a job" you're going to see mistrust and anger grow.

Another thing to consider is to reexamine your policies regarding salary and benefits to make certain that they fit the needs of the times. In other words, pay and benefits packages that reward long term employment may be out-of-step with the new workplace realities. Many companies are now finding that employees are expecting more flexibility in their benefits and pay. For example, flex-time, compensatory time, telecommuting, unpaid leave and sabbaticals are all on the rise. Flexible benefit packages, that allow employees to choose where their benefit dollar allocation is spent, are also popular.

But the fact remains, the rules have changed for both the employee and the employer. Both sides need to have a new perspective and make adjustments in their expectations.

Good managers know that employee satisfaction is essential to healthy teamwork, initiative and productivity.  Based on an in-depth study of the most innovative ideas in creating a culture where employees thrive, our recruiting & retention tools have all the secrets you will need to find and keep the best employees.

Creative Recruiting & Retention Strategies
Recruiting & Retention Booklet Series (Includes Joan’s booklet, 86 Creative Ideas for Having More Fun & Less Stress at Work)