The Survivors Paradox Often, after the dust has settled, those left standing in the organization have an extremely difficult time helping the organization improve. Remaining workers are confused and have mixed emotions. On one hand, they are glad to have a steady paycheck, and the company's apparent high regard for them gives some comfort. On the other hand, their trust and loyalty has been undermined by the displacement of fellow employees. Many of today's employees have an underlying wariness of corporate America's obsession with downsizing.
Any teamwork established before the downsizing is difficult to maintain or recreate.
Innovation and creativity are temporarily stifled as workers remain uncertain and conservative. Workers may wonder if further cuts are coming. With downsizing, trust is then replaced by fear. Fear generates mediocrity. Mediocrity leads to atrophy.