Employability and mental health in dismissed workers: the contribution of lay-off justice and participation in outplacement services

The current study’s explored if and how psychosocial resources of employability contribute to mental health of dismissed workers. Degree of outplacement services use, perceived employability and perceived organizational lay-off justice were examined as mediators of the relation between personal employability and mental health. The research involved dismissed workers in the pharmaceutical industry, who joined programs of re-employment sponsored by companies. Structural equation results showed that the lay off workers with higher personal employability were less likely to have mental health deterioration. Furthermore psychosocial resources of personal employability directly increased perceptions of having job available alternatives and was indirectly associated with a higher degree of use of outplacement programs, but these variables didn’t mediate the relation with mental health. Lay-off justice had a direct positive impact on mental health, but it was not relate with employability. Our study contributes to understand some psychological processes that can affect the decision to utilise outplacement programs and offers suggestions for employability profiling.