Employee Attitudes Can Be Slow To Recover From A Company Financial Downturn

Managers would like their employees to be trusting, loyal, and committed to the organization. Unfortunately, many of today’s organizations are facing serious economic downturns which can have long-lasting effects on employee attitudes. Today’s best managers know that even if a company recovers from a serious down-turn and improves its economic performance, employee attitudes may suffer permanently and never fully recover. For example, even if the company returns to a previously solid state, employee attitudes, such as trust, loyalty, and commitment, may never recover from a downturn. Today’s best managers are aware of this phenomenon and work to improve employee attitudes long after they have helped a company to improve financially.

Source: Grunberg, L., Moore, S., Greenberg, E. S., & Sikora, P. 2008. The changing workplace and its effects: A longitudinal examination of employee responses at a large company. Journal of Applied Behavioral Science, 44, 215-236.