Recession at Work

Employment practices, labour flexibility and the Great Recession: An automotive case study

“…Importantly, this has been a proactive business decision, viewed by the employer as an opportunity to further enhance efficiency and financial performance rather than as a response to challenging economic conditions (Appelbaum et al, 2013; Geroski and Gregg, 1997; Thompson, 2011). Thus, while large-scale quantitative studies at a labour market level in the UK and Ireland suggested continuity rather than change in employment practices (Roche et al, 2013; van Wanrooy et al, 2013), in our case organisation there was clear evidence post-recession of a shift towards a more market-led employment model driven by short financial imperatives (Cappelli, 1999; Thompson, 2011). Perhaps the timing of the fieldwork of quantitative labour market studies in 2011/12 meant they offered only offer partial and preliminary insights into the full aftermath of the recession.…”

“…Somewhere in between these two extremes is the suggestion that any changes might not fit neatly into either of these pure scenarios, as employers adopt a more ‘pick and mix’ approach enmeshing elements of soft and hard HRM practice, or that firms might make only short-term adjustments while largely maintaining the status quo (Roche and Teague, 2014). Recent labour market evidence in both the UK and Ireland certainly lends some empirical support to this more variegated picture (Roche and Teague, 2014; Roche et al, 2013; van Wanrooy et al, 2013). However, there are at least two limitations of such studies.…”

“…A further strength is inclusion of worker perspectives, which is much needed in HRM research. Conceptually, the study contributes to ongoing debates in this journal and elsewhere regarding employment practices in turbulent times (Ahlstrand, 2015; Larsen and Navrbjerg, 2015; Roche et al, 2013; Svalund, 2015), as well as broader debates regarding labour flexibility and the impact of economic cycles on employment (Dekker and van der Veen, 2017; Preenen et al, 2017; Roche and Teague, 2014; Teague and Roche, 2014). The remainder of the article is structured as follows.…”

“…Furthermore, to what extent did the recession act as a catalyst for the modification of existing labour flexibility practices, perhaps as part of an attempt to improve the future resilience of the workplace? Unfortunately, the timing of significant British and Irish studies in 2011/12 (Roche et al, 2013; van Wanrooy et al, 2013) mean they can offer only preliminary insights into the aftermath and legacy of the recession on work and employment practices. This may also partly explain why such studies tend to suggest continuity rather than change, while analysis of the limited case study evidence available suggests a harsher reality of restructuring, job cuts and the imposition of new, harder HRM techniques (Cook et al, 2016; Johnstone and Wilkinson, 2017).…”

“…While businesses may respond by reducing employment levels through downsizing (Cooper et al, 2012; Datta and Basuil, 2015; Dencker, 2012; Goyer et al, 2016; Johnstone, 2018), they may also make changes to employment practices. Examples include freezing wages and bonuses, reducing overtime, diminishing opportunities of promotion, reallocating jobs and responsibilities, reducing expenditure on training and development, revising pension provision and adjusting working time (Ahlstrand, 2015; Cascio, 2014; Gunnigle et al, 2013; Lai et al, 2016; Larsen and Navrbjerg, 2015; Roche et al, 2013; Strandholm et al, 2013; Svalund, 2015; Svalund et al, 2013; van Wanrooy et al, 2013).…”