Maintaining employee engagement post retrenchment in the PGM mining sector in South Africa

Abstract

Restructuring in the form of retrenchment has become a widely used strategy to save company costs however, it can result in psychological and physical strain on the surviving employees, leading to reduced morale, commitment and employee engagement. The purpose of this qualitative study was to delve into the lives of the surviving employees to comprehend retrenchment as a phenomenon and its impact on them. Furthermore, the study intended to explore the strategies or interventions required to rebuild and maintain employee engagement post retrenchments in the Platinum Group Metals mining sector in South Africa. The data was collected through semi-structured interviews of sixteen participants who survived the retrenchments. The study revealed how retrenchments affected the emotional, psychological and physical aspects of the surviving employees leading them to find alternative ways to cope and navigate through the change. It also revealed how retrenchments altered the workload of the surviving employees causing them to have more responsibilities and experience work intensity because of the increase in job demands and reduction in resources. The study revealed that effective communication, consulting and involving the affected employees can play a significant role in negating the effects of retrenchments such as anxiety, job insecurity and increased workload. Furthermore, support and direction from leadership, continuous engagement with the surviving employees and provision of training to close the gaps that the laid off employees created were identified as job resources that can enhance employee engagement, directly improving organisational performance. This study therefore emphasises the need for organisations to integrate employee wellbeing in the restructuring process and implement interventions that minimise the effects of retrenchment on the surviving employees, thereby building a resilient team that can sustain required operational performance.