Understand Remainers’ Responses to Fire-and-Rehire After Layoffs

Wang, Wen; Seifert, Roger; Orasan, Constantin; Saadany, Hadeel

Abstract

The controversial fire-and-rehire employment practice has surged in the last a few years to cushion business uncertainty caused by external market shocks. Layoffs simultaneously distress those still in work (kept due to their relevant skills-the remainers) and present them with opportunities to grow. Extant studies have revealed the downsizing survivors’ syndrome mainly derived from moral stance towards co-workers who were, often perceived being unfairly laid off, however, the impact of fire-and-rehire, some of former colleagues were rehired on different employment terms and condition, on remainers has been under studied. Theorising from organisational justice and motivated reasoning, this article examines the association between the presence of a high proportion of skilled workers on flexible employment contracts (many are fired-and-rehired former workers), remainers’ job satisfaction, and their job search behaviour. Setting in the British engineering manufacturing sector that was ‘shocked’ by the ‘Brexit’-Britain exit the European Union between 2016 and 2020, we use a novel triangulated dataset of 3,007 anonymous online employees’ reviews of firms that made staff redundant, annual corporate responsible reports, and publicised financial performance reports. The analysis reveals the paradoxical sentiments (empathy and tension out of self-interest) of remainers towards rehired co-workers, this has worsened their sense of organisational justice, led to a low level of job satisfaction and a high level of on-the-job search activities. The findings offer a nuanced understanding of remainers’ responses and the unintended damage to employment relations with regard to fire-and-rehire practices after layoffs, adding valuable theoretical and practical implications to the debate.

Citation

Wang, W., Seifert, R., Orasan, C., & Saadany, H. (2024, August). Understand Remainers’ Responses to Fire-and-Rehire After Layoffs. Presented at 84th Annual Meeting of the Academy of Management (AOM 2024), Chicago 2024

• Presentation Conference Type: Conference Paper (published)
• Conference Name: 84th Annual Meeting of the Academy of Management (AOM 2024)
• Start Date: Aug 9, 2024
• End Date: Aug 13, 2024
• Acceptance Date: Jul 1, 2024
• Online Publication Date: Jul 9, 2024
• Publication Date: 2024-08
• Deposit Date: Aug 6, 2024
• Publisher: Academy of Management
• Volume: 2024
• DOI: https://doi.org/10.5465/amproc.2024.13727abstract
• Keywords: AOM Annual Meeting Proceedings 2024, AOM Chicago 2024, Conflict Management
• Public URL: https://keele-repository.worktribe.com/output/878304