The Psychological impact of redundancies during the economic crisis as studied on a Maltese Sample Nathalie Gatt Msc in Occupational Psychology (Leicester)

The Psychological impact of redundancies during the economic crisis as studied on a Maltese Sample

Nathalie GattMsc in Occupational Psychology (Leicester)

Why was this study conducted?

1.Increase in unemployment rates in Malta in year 2009 when compared to previous year

2.Increase in the number of unemployed turning to employment agencies to find jobs

3.Lack of local research

4.The need to assist local authorities dealing with redundancies

The research design of the study

Qualitative study – phenomenological approach

7 in-depth, face-to-face and semi-structured interviews

Participants retrieved mainly from ETC database

Selection Criteria: Maltese nationality and experienced redundancy within the past year

Interview setting : ETC interviewing rooms

Analysis of Data

Interviews were recorded and transcribed

Each was manually analysed through the process of re-reading transcripts

Participants work histories varied widely. Most had long-term employment

Thematic analysis was employed

Frequency of themes was recorded

Themes were validated

Main Findings

Most findings were similar to existing literature mainly conducted in UK

Major theoretical implication was psychological distress upon redundancy in the form of:

Stress and anxiety

• Lack of income• Lack of meaning• Lack of time structure• Lack of socialisation• Uncertainty

“There is the aspect of being afraid of the unknown, and the consequences that this might have on you”

“How am I going to live? How are we going to survive without an income?”

Perception of unfairness

Perceived breach in psychological contract

Feeling Used

Betrayal Redundancy used as an excuse Employee went beyond his role at work Betrayed despite employee commitment

Injustice

Procedural Distributive

“I feel angry since I did everything I could.... I performed duties that were not part of my job”

“I mean all that you have done, the relationship you have built, is all part of the culture. It becomes part of you with all the hours worked....Nobody appreciates this effort”

Lack of trust in other employers

As a result of betrayal and injustice experienced from previous employment

“You cannot trust them. I believe in this so much that

even in my current employment I try to stay a step

back”

Lack of self-confidence

Worthlessness “You feel literally useless” Vulnerability Helplessness Lower self-esteem Self-blame Lack of personal identity “I had to depend once again

on my mother….I was in a position of starting to build my own life”

Growth

Personal development through strengthening coping resources

“I am not disheartened. I mean sometimes you have to fightagainst difficult odds but the harder you fight the stronger youbecome especially if you manage to succeed”

Professional development through more education and alternative experiences

“Honestly speaking, even though I went through thosetraumas that affected me psychologically I can say that thechange was for the better through education. I widened myhorizons through many aspects with different jobexperiences”

Finding reported minimally

A tentative explanation of the effects of redundancy

Influence of moderating and mediating factors

Examples:

Job satisfaction Duration of employment Position within the family Level of education Societal norms Attributional style Personality Age Treatment during employment

Therefore, the illustrated effects are Consequences of redundancy or result with the act of redundancy?

The complex nature of redundancy and the various psychological effects brought out in this study may help companies reflect on the importance of designing appropriate interventions in order to have:

A mentally sane-workforce A committed workforce A skilled workforce

Limitations

Small sample, heterogeneous Influence of hindsight bias Different level of self-expression of participants Personal researcher bias

Practical implications

Interventions need to be tailor-made: a one size-fits all approach may be ineffective

1. Training and work-placements

2. Voluntary redundancy schemes

3. Open communication

4. Psychological support

5. More appropriate psychological contract

6. Unionising employees

7. Career guidance

8. Personalised approach with employment advisor

Thank you