The Experiences of Layoff Survivors: Navigating Organizational Justice in Times of Crisis

Abstract

This study explores the impact of COVID-19 layoffs on surviving employees’ perceptions at Airbnb, a key player in the hospitality industry, during the global pandemic. The crisis brought organizational justice into sharp focus, raising questions about fairness, employee satisfaction, and trust in management. Utilizing an interpretivist approach, we conducted fifteen semi-structured interviews with Airbnb employees who survived the layoffs. Accompanied by a comprehensive literature review, our analysis delved into the challenges these employees encountered. The thematic analysis uncovered insights into organizational justice dimensions—distributive, procedural, interactive, and informational—and their role in shaping fairness perceptions and employee outcomes. Findings reveal that despite challenging circumstances, empathetic and proactive practices like regular check-ins and transparent communication significantly helped maintain fairness perceptions among survivors. This counters the common belief that layoffs invariably diminish justice perceptions. Our study demonstrates that negative impacts can be effectively mitigated through thoughtful organizational practices. In conclusion, the research underscores the importance of organizational justice during crisis-induced layoffs. It advocates for maintaining fairness and transparency to preserve employee trust and satisfaction, which are vital for organizational resilience and sustainability. This study enriches the literature on organizational justice and crisis management, providing valuable insights for businesses in similar situations.

<em>And Justice for All.</em> Organizational Justice – a Coherent Path to Organizational Sustainability

“…Employee job satisfaction, reduced stress, and increased psychological well-being are all correlated with fairness in organizational processes, interactions, and results [76]. Workers are more likely to be involved in their work, contribute well to the company, and stick with it during challenging times when they believe they are treated fairly at work [77][78][79]. Additionally, there is a negative correlation between organizational justice and the inclination to leave [80,81].…”

A Novel Neutrosophic Likert Scale Analysis of Perceptions of Organizational Distributive Justice via a Score Function: A Complete Statistical Study and Symmetry Evidence Using Real-Life Survey Data

“…Throughout the research process, detailed interviews were conducted with laidoff employees, revealing that even during the crisis, empathetic and proactive practices maintained laid-off employees' perceptions of justice. Furthermore, it was emphasized that negative effects can be mitigated through careful practices, highlighting the importance of organizational justice during times of crisis [37].…”