Contrasting voluntary versus involuntary layoffs: Antecedents and outcomes

Although organizations execute layoffs to adapt their labour force to changing business demands, there is no existing empirical assessment of antecedents and outcomes associated with varying layoff implementation techniques (voluntary vs. involuntary layoffs). Accordingly, this research modifies a turnover framework to empirically evaluate the impact of work-related and non-work-related variables on layoff decisions, for both voluntary and involuntary layoff implementation techniques. Management and employee dyads in three companies assessed 976 employee profiles using a policy-capturing approach. Management decisions regarding involuntary layoffs are influenced most by the employees' job performance, job satisfaction, and job commitment. Comparatively, employee decisions regarding voluntary layoffs are influenced by severance pay, job satisfaction, job performance, and family size. Theoretic and management implications are discussed.