Redundancies: Italians more confident in their businesses and in redeployment

The uncertain macroeconomic environment is fueling fears of reorganizations and, consequently, redundancies. Italian workers, however, appear to be more confident than the average international sample including the United States, the United Kingdom, Brazil, and Argentina. A survey, "Culture in Balance: Managing Layoffs Without Losing Confidence," conducted by Intoo (the Gi Group Holding company specializing in career transitions and outplacement) in collaboration with the research firm Workplace Intelligence, interviewed 1,100 human resources managers and 1,100 full-time employees. It found that globally, 53% of workers say they fear being involved in a redundancy plan within a year. The much lower Italian figure of 37% shows greater confidence in both the stability of their jobs and the resilience of their company, as well as in the less traumatic impact of the social safety net and outplacement tools used in Italy.

While professional continuity represents added value in terms of contributions and social security, as well as for growth and development, it's also true that limited mobility doesn't help build a useful network in the event of a change and often doesn't encourage the acquisition of new skills. Almost all of the workers interviewed feel unprepared to tackle the potential search for a new job, both in terms of their professional network and the skills and abilities needed to apply for a new position. Furthermore, one in six people believe this search could take a long time: a quarter of Italians estimate it could take more than a year.

"Even when approached with the best intentions, staff reductions, voluntary departures, redundancies, and layoffs represent complex and delicate moments in the life of an organization," explains Cetti Galante, CEO of Intoo. "We must consider how exit management inevitably reflects the company's culture and image." And companies don't seem very prepared. Fifty-eight percent of HR professionals internationally (65% in Italy) admit that their company doesn't provide adequate support in the event of a staff reduction, even though 64% in Italy state that their organization is committed to fairness in the layoff process. Those directly affected, the workers themselves, don't seem to be very aligned with this vision: 60% globally and 50% in Italy believe their managers lack empathy during layoffs. "Regardless of the operational difficulties revealed by the research, thoughtful management of these situations, considering all the internal and external consequences, is increasingly important," explains Galante. By clearly communicating the reasons behind these choices and offering concrete support, characterized by a human approach and aligned with corporate values, we can work to preserve the company's social responsibility, the employability of people inside and outside the company, the engagement of those who remain, and the external attractiveness necessary for the sustainability and resilience of the business.

A poorly managed redundancy plan can have a negative impact on the remaining workforce, both on their well-being and motivation: 80% of employees globally, and 78% in Italy, believe that companies tend to underestimate this impact. A layoff triggers a strong sense of discouragement. After the announcement of a redundancy plan, 71% of workers (68% in Italy) said they would immediately begin looking for a new job, while 62% (56% in Italy) lost trust in their employer. Furthermore, one in six respondents (12% in Italy) stopped working hard, 44% (31% in Italy) felt their productivity was compromised, and reported increased stress (over 60% in Italy, 71% globally).

This perception is significantly out of line with that of HR professionals: half internationally, and 42% in Italy, believe that those who remain would work harder if a redundancy plan were announced. Moreover, in a historical moment when it's very difficult to attract talent, especially in certain sectors and with certain skills, layoffs can also have significant reputational consequences. Nearly half of companies globally (46% in Italy) have experienced online repercussions, and approximately 1 in 5 workers would be willing to complain publicly—a figure that rises to 1 in 4 among Generation Z workers.