The practice of laying off employees differs in different countries. Layoffs in the US are often quick. However, in other countries this practice will be considered absurd or even cruel. In Germany and other European countries, laid-off workers are given several weeks to complete projects and gain an advantage when they enter new jobs. Erin Meyer, a professor at INSEAD Global Business School, has studied how cultural differences affect business.
The United States has a quick, impersonal approach to firing its employees
In US firms, laid-off employees usually hold short meetings with their employer or HR manager to find out why they were fired. “They usually only have a few hours to pack their things and leave,” Meyer said.
One of the reasons for this is the “voluntary” labor contracts of the country between employees and their companies. Contracts “at will” allow employers to dismiss subordinates for any reason at any time, if it is not discriminatory. The USA is just one of the few countries where employment is arbitrary.
Another reason may be that American managers do not want to disclose confidential corporate information to laid-off employees who may disclose trade secrets.
In Germany, as a rule, dismissed employees remain weeks after dismissal
They are given time to complete projects and even begin to search for work, remaining in their previous positions.
Meyer attributes the calmer atmosphere of layoffs to both Germany’s friendly policies and their relationship-oriented culture. According to Meyer, German employees usually establish close relationships with their colleagues, which makes breaking up more painful for the employer.
Japanese employees see social taboo as layoffs
Japanese law allows workers to reject early retirement packages. As a result, laid-off workers who no longer play a role in their company sometimes continue to go to the enterprise and work on other projects.
Layoffs in Japan are a rare occurrence, mainly due to a lifelong employment system, where full-time workers usually remain in the same company for years. The New York Times reports that a permanent employment contract is a factor in a country's culture associated with government policies that prevent companies from firing workers.
In Hong Kong, bankers who lose their jobs receive severance pay for months
Some senior members receive guaranteed content recorded in their contracts, which makes termination a “long-paid vacation”.
Sweden has the most progressive layoff tactics in the world
In this country, laid-off workers are being helped to stand up. Employees can pay private safety advice that helps laid-off workers develop new skills and receive financial support. 85% of such workers find a new job within a year.
In India, layoffs were a source of shame
As the country's economy grew and layoffs became increasingly common, culture no longer stigmatized dismissed employees.
The growth of temporary work and jobs has led to a cultural shift. “Globalization has made Indian leaders more loyal to the Western idea that dismissal is part of market ups and downs rather than personal failure,” writes ET reporter Saumya Bhattacharya.