The Kenexa Research Institute Identifies Priority Number One in the Aftermath of Layoffs: Reengaging Employees

WAYNE, PA--(Marketwire - December 9, 2008) - With anywhere from four to 10 percent of global companies undergoing layoffs these days, many employees find themselves in one of two categories -- survivor or laid off employee. In a time where high performance is critical, organizations that conduct layoffs may find that the survivors are disenchanted, de-motivated, and disengaged -- characteristics that can drag down the fiscal health of the entire company. The Kenexa Research Institute (KRI) examined what is needed to support engagement of survivors and where companies may fall short. KRI asked the critical question: What does it take to keep survivor employees engaged after layoffs?

According to the analysis from the Kenexa WorkTrends™ database, employee engagement is statistically and practically lower for employees whose organizations have conducted layoffs in the past 12 months than it is for employees working in organizations without layoffs. In addition, the survey found that both layoff and no layoff groups of employees need to feel confident about their company and in their future. Of those employees in organizations who have experienced layoffs in the past 12 months, however, fewer employees feel confident -- only 43% of employees with layoffs report confidence in the future of their company, compared to 61% of employees with no layoffs (a 17 percentage point difference).

Further analysis reveals where survivor employees are most vulnerable. For example, a little more than one-third (35%) of the workforce whose companies have laid off workers in the past year feel confident in their senior leaders, compared to 45% if no layoffs. Nearly the same percentages apply for employees who feel they have a promising future at the company (35% if layoffs and 43% if no layoffs).

Four key themes emerged as drivers of engagement for survivors:

    1) Building confidence in the organization and leaders;
    2) Instilling optimism for the future;
    3) Caring for employees (e.g., managing stress and work/life balance,
       ensuring safety, offering adequate pay, supporting their community);
       and
    4) Training the survivors to keep the business running and serving
       customers.

"The results of this analysis provide companies that are undergoing -- or planning to undergo -- layoffs invaluable insight into how to keep survivor employees engaged," stated Jack Wiley, executive director, Kenexa Research Institute. "After the chaos of downsizing, it is imperative that leaders work hard to re-instill confidence in the viability of the organization, as well as set up support systems for work stress. The aftermath of layoffs is messy, but unwavering leadership can heal their organization more quickly by equipping employees to do more with less in their attempts to meet and exceed customer needs."

The survey also found that the percentage of companies undergoing layoffs range widely from country to country, with Brazil reducing the most (10%) and Japan and Russia reducing the least (4%). In addition, a large percentage (43%) of laid off workers are 25-34 years of age, and clerical and professional workers bear the brunt of the layoffs, 29% and 22% respectively.

About WorkTrends™

The Kenexa WorkTrends database is a comprehensive normative database of employee opinions on topics including leadership, employee engagement and customer orientation. Comparisons are available for workers from Australia, Brazil, Canada, China, Germany, India, Italy, Japan, Mexico, the Netherlands, Russia, the United Kingdom and the United States.

About Kenexa

Kenexa (NASDAQ: KNXA) is a global leader in building the world's greatest workforces using a combination of software, employee research science and business process optimization. Kenexa's global solutions include applicant tracking, onboarding, recruitment process outsourcing, employment branding, skills and behavioral assessments, structured interviews, performance management, multi-rater feedback surveys, employee engagement surveys and HR Analytics. Kenexa is headquartered in Wayne, Pa. (outside Philadelphia). Additional information about Kenexa and its global products and services can be accessed at www.kenexa.com.