Workforce Reduction In Australia and New Zealand: A Research Note

Abstract

Relatively few studies have examined the incidence of permanent workforce reduction and factors related to workforce reduction behaviour. In this study, such issues are addressed using data from more than 1,450 organisations in Australia and New Zealand. On average, about 36 per cent of respondents reported a permanent reduction of the workforce over the past three years (with an average reduction of almost 19 per cent of the workforce). Several factors, including product or service demand, pressure to focus on short‐term profits or budget goals, a major change in organisational strategy, the quality of the relationship between the employer and employees, the organisation's expressed commitment to job security and the age of the organisation, distinguished organisations that had or had not engaged in a permanent employee retrenchment.