The impact of short-time work compensation schemes on worker attitudes, well-being and careers: A psychological perspective

The present research project is part of an overarching BRAIN-BE 2.0 project looking into the psychological and economic consequences of short-time work (STW) compensation schemes (sometimes coined “temporary unemployment”). In this PhD project, the focus is on the psychological aspects of STW compensation schemes. STW compensation schemes are public programs that allow companies facing a temporary reduction in production or demand to fully or partially suspend the execution of employment contracts while providing employees with unemployment benefits. All around the world, employers have made extensive use of this policy instrument during the Covid-19 pandemic. In Belgium alone, more than one million workers were affected by STW at the peak of the crisis. Because such a measure saves jobs and alleviates deprivation of financial resources in the short term, it is usually considered beneficial for employees with overall positive outcomes on employee attitudes and well-being. Yet, there could be a dark side. First, it might constitute a disruptive event that indicates a threat to employment and employability. Second, it might trigger feelings of being instrumentalized by the organization and undermine the relationship between the organization and employees on an ongoing basis. This could negatively affect employee well-being, attitudes and career outcomes. In response to the gap in existing literature, the present research project aims to investigate the bright and dark sides of STW on various individual outcomes. More specifically, our project counts two sub-objectives. The first research question explores the positive and negative impact of STW on well-being and job attitudes, with a focus on perceived organizational support, job insecurity, and organizational dehumanization. The second research question probes the effect of STW on perceived employability and career-related outcomes, notably in comparison with unemployment and temporary employment. To explore the effect of STW in the longer term, we plan to use a longitudinal design involving the collection of quantitative data over several months.