Through mechanisms like the five stages of grief, we have developed a greater understanding of the process we go through when we grieve the loss of something valuable to us. Less is known, however, about the mourning we go through when the company we work for ceases to exist.
It’s a gap new research from Babson College aims to plug. The authors conducted semi-structured interviews with numerous former bankers at Lehman Brothers. The interviews allowed the researchers to identify five clear stages employees tend to go through when their firm folds.
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Experiencing the death event – This often resulted in considerable uncertainty among employees about their future career prospects and their ability to continue progressing within the banking industry. There was particular concern about the stability of the sector.
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Remembering the organization – The memories people have of the organization varied between those who focused on the bonds they had with colleagues and those who focused more on the nature of the work itself.
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Assessing loss – This then fed through into the losses people felt, with those who took a more personal approach viewing their loss like that of a loved one whereas those focused more on the job itself were unhappy at losing an exciting or fulfilling job.
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Salvaging: evaluate and restore – In time, the bankers shifted from focusing on what they’d lost to focusing on what they still have and what they might have in the future. This generally involves taking stock of what is left and then crafting a path forward.
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Creating continuity and detaching – Continuity is achieved by taking something from their past and carrying it into the present. Some employees wanted to do this by staying close to former colleagues, whereas others sought to create new ventures intead.
“Organizational mourning involves both holding on and letting go of a defunct organization,” the researchers conclude. “Understanding how former members mourn is crucial to appreciate how they may ultimately find continuity after an organizational death, including how they enact their subsequent career paths.”
