With the current downturn in the economy, layoffs are an option companies are resorting to, to control their costs. In such a scenario, what will be the mindset of employees who still continue with the organization? The pink slip hangs like a Damocles sword. Not surprisingly, employees' morale will be at a low ebb. How does one deal with the situation?

To sustain the morale of employees is indeed an arduous task. More so as cost-cutting, downsizing have become an inevitable corporate reality due to economic downturn. Managers are increasingly concerned with strategies to ensure maintaining employee morale. Boosting staff motivation and morale is especially challenging when companies are forced to undergo the exercise of layoffs.

At a time when corporations need to improve performance by increasing the energy and focus of their people,"morale busters" like cost-cutting, downsizing or right sizing are working against them. These include employees' feelings of guilt at surviving a layoff affecting their friends, helplessness as increased workloads overwhelm them, and gnawing suspicions because of a lack of job security. The situation is complicated due to the fact that huge investments in the IT sector have not taken off as anticipated.

Motivation, Organizational Development, Organizational Behavior, Recruitment & Staffing, Training and Development, Strategic HR, Industrial Relations, Career Counseling, Technology, current downturn, economy, companies are resorting, control their costs., mindset of employees, organization, pink slip hangs, employees morale.