The Psychological impact of redundancies during the economic crisis as studied on a Maltese Sample Nathalie Gatt Msc 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 fight against difficult odds but the harder you fight the stronger you become especially if you manage to succeed” Professional development through more education and alternative experiences “Honestly speaking, even though I went through those traumas that affected me psychologically I can say that the change was for the better through education. I widened my horizons through many aspects with different job experiences” 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 I nterventions 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