Retrenchment Repercussions: Effects on Survivors

This study shows how perceptions of fairness during a retrenchment affect the remaining employees’ mental and physical well-being and may drive them to consider leaving the organisation voluntarily. These findings are particularly crucial for companies that are planning or undergoing a retrenchment exercise. We recruited 220 participants from the electrical and electronics sector in Singapore who had survived a retrenchment exercise within the last 12 months. Results of regression analyses and mediation testing supported our hypotheses. We provide practical recommendations based on the findings.