Recessionary actions and absence: A workplace‐level study

Stephen Wood,George Michaelides,Chidiebere Ogbonnaya

doi:10.1002/hrm.22008

Stephen Wood, George Michaelides + Show 1 more

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https://doi.org/10.1002/hrm.22008

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Abstract

AbstractActions such as work restructuring and wage and employment freezes taken by organizations in response to recessions are widely assumed to decrease employees' job security and detrimentally affect perceptions of management's trustworthiness. We assess whether these effects occur and if, in turn, they affect workplace absenteeism. Using data from Britain's Workplace Employee Relations Survey 2011, we show that the effects on stress‐based absence are limited and not as predicted, but the effects on withdrawal‐based absence are strong and as predicted. Reductions in well‐being or job security's effect on well‐being did not affect absence, and while the reduction of trust perceptions' effect was to increase anxiety, anxiety did not increase but reduced absenteeism. The effects on withdrawal absence differ: those of recessionary action through job security reduce absenteeism, while those through trust perceptions increase it, both as predicted. The two effects involving trust perceptions are less pronounced when recessionary actions are accompanied by voluntary layoffs, but not by compulsory layoffs. The implications for management are that they should be more conscious of the effects on absence when planning recessionary actions, and more generally their effects on presenteeism.

Highlights

Research on recessionary actions – actions taken by employers in response to recession or austerity – has looked at downsizing and organizational restructuring
Recessionary actions and compulsory layoffs were not significantly related to depression, while voluntary layoffs were likewise unrelated to anxiety
Testing Hypothesis 2, which involves job security and well-being, we found recessionary actions were negatively related to job security, and this in turn was negatively related to anxiety, while anxiety was negatively related to absence

Summary

Introduction

Research on recessionary actions – actions taken by employers in response to recession or austerity – has looked at downsizing and organizational restructuring. The most studied behavior is absenteeism, with most research revealing an increase following downsizing (e.g. Bourbonnais, Brisson, Vézina, Masse, & Blanchetter, 2005; Firns, Travalgione, & O’Neill, 2006; Kivimäki, Vahtera, Pentti, & Ferrie, 2000; Vahtera, Kivimäki, & Pentti, 1997; Vahtera et al, 2004, Westerlund, Ferrie, Hagberg, Jeding, Oxenstieran, & Thoerell, 2004). These studies focus on correlating downsizing with individuals’ absenteeism, but this has been at the expense of three issues. Johns (2009:12) identified a need, which remains unfulfilled, to examine the mediators of this relationship This is important if we are to understand the mechanisms through which recessionary actions lead to changes in absence levels and how their effects may differ between mechanisms. We might expect a reduction in job security consequent on recessionary actions to reduce absenteeism, while the associated psychological strain might increase it

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