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Involuntary and voluntary demotion: employee reactions and outcomes

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Listed:
  • Sophie Hennekam

    (Audencia Recherche - Audencia Business School)

  • Subramaniam Ananthram

    (CBS - Curtin Business School - Curtin University)

Abstract

Demotion has received little attention from scholars and practitioners alike. The purpose of this study was to assess empirically the reaction to, and outcomes of, both involuntary and voluntary demotion. Drawing on 49 semi-structured in-depth interviews with 28 involuntarily demoted workers and 21 voluntarily demoted workers, we develop a conceptual model using organizational justice theory and person-job fit of the reaction to and outcomes of demotion. We show that involuntarily demoted individuals might react by expressing turnover intentions and lower motivation and commitment, indicating that the demotee's reaction is related to perceptions of fairness. Voluntary demotion is related to a better work-life balance, greater satisfaction, less stress and burnout and is perceived to be a viable phased retirement option by older workers. In addition, the findings highlight the role of demotion-related stigma, status loss, identity threat, and age in the way employees react to the experience of demotion.

Suggested Citation

  • Sophie Hennekam & Subramaniam Ananthram, 2020. "Involuntary and voluntary demotion: employee reactions and outcomes," Post-Print hal-03232764, HAL.
    • Handle: RePEc:hal:journl:hal-03232764
    DOI: 10.1080/1359432x.2020.1733980
    Note: View the original document on HAL open archive server: https://hal.science/hal-03232764v1
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    References listed on IDEAS

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    1. Oude Mulders, Jaap & Henkens, C.J.I.M. & van Dalen, Hendrik Peter, 2021. "Employees’ emotional, cognitive, and behavioral responses to increasing statutory retirement ages," Other publications TiSEM 4aab8515-50c9-4c23-bd2f-3, Tilburg University, School of Economics and Management.

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