Financial crisis and collapsed banks: Psychological distress and work related factors among surviving employees—A nation‐wide study

Abstract

AIM: The study considered psychological distress among surviving bank employees differently entangled in downsizing and restructuring following the financial crisis of 2008. METHODS: A cross-sectional, nationwide study was conducted among surviving employees (N = 1880, response rate 68%). Multivariate analysis was conducted to assess factors associated with psychological distress. RESULTS: In the banks, where all employees experienced rapid and unpredictable organizational changes, psychological distress was higher among employees most entangled in the downsizing and restructuring process. Being subjected to downsizing within own department, salary cut, and transfer to another department, was directly related to increased psychological distress, controlling for background factors. The associations between downsizing, restructuring, and distress were reduced somewhat by adding job demands, job control, and empowering leadership to the model, however, adding social support had little effect on these associations. CONCLUSION: Employees most entangled in organizational changes are the most vulnerable and should be prioritized in workplace interventions during organizational changes.

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