Cutting the size of workforce is painful and tricky. Enterprises should rethink with empathy about bringing in the best practices to help HR and middle managers deal with the current scenario prevailing with a layoff season looming at large around globe. As top brass in a big corporate continue to struggle to retain and attract workers amid the Great Resignation, the focus switched to Tech layoffs and cost-cutting as concerns about a potential recession manifested and grew at a steady pace. A whooping 42,000 workers have lost their jobs around globe in 2022, while the blame game is on pandemic and others owe it to hiring more than needed workforce during growth periods.
The Big Tech Layoffs of 2022 – A better approach to firing employees with impact on projected recruiting trends in 2023
When an enterprise decides to go for downsizing its workforce, certainly there will be some instant gratification with immediate and temporary benefits like a boost in profits, a relief from likelihood of getting bankrupt, re-structuring with the downsized workforce, and getting rid of non-performing workers. However, with the current rate of layoffs and terminations, enterprises are struggling with issues like a reduction in the number of skilled workers, low employee morale, despair, dismay, fear, uncertainty, stress, and guilt among the existing workforces.
In a nutshell, Tech layoffs without prior notice can greatly impact existing employees’ work satisfaction and commitment towards tasks, that could lead to a low performance rate. This necessitated for HR specialists to work tactfully and manage the adverse impact of Tech layoffs on current workers and while recruiting new employees.
Effective ways to deliberate on firing fever and acting with a fairer approach to termination.
- A carefully formulated plan while downsizing
- An empathic attitude towards employees who were laid off with a reasonable time to find work
- Instill confidence in the new workers who are hired.
What exactly led to the layoff menace around globe?
There is an imbalance in the structural shift in consumer preferences and availability of good and services during pandemic. Experts predicted that the boom in digital services currently would last for long and will be highly effective and rewarding. Looking at the current scenario, we can easily find the gap in expectations versus reality as one could not have been wrong enough as the slowdown and structural shift in consumer preference have come as a disappointing realization to dampen the spirits of global commerce.
Tech Layoffs – an aftermath of pandemic
The layoff menace is the manifestation of over expectations towards growth by top brass and leadership of MNCs about projected growth potential against consumer behavior. When there is a boom and an explosion of e-commerce during the pandemic, many investors viewed it with a positive vision and anticipated a splurge in the spending power of consumers. The moment the pandemic ended, the consumers’ behavior showed a change towards a downward trend in spending, and tech companies are now facing the aftermath of pandemic and are in a crisis. To cut costs and reduce expenses for bringing in an equilibrium in organizational infrastructure layoffs became the norm.
Upgrade and upskill and keep abreast of advanced technologies
At a time, the market is highly unstable and volatile, uncertainty and indecisiveness on the part of the top management may not be a wise option. The current workforce on their part should brace up the situation to seek and strengthen their abilities and hone their skills to pivot in line with the external market uncertainties. It is imperative to add that professionals who have not been spending their time effectively towards upgrading their technical expertise in line with the advances in technologies of AI, Blockchain, 5G, Biotechnology, IoT and work patterns concerned to them are the ones who are at the receiving end of termination.
4As to prepare for a compassionate layoff
Many HR leaders are trying hard cinching the strings as tight as possible, but layoffs are impending and inevitable in current scenario in many organizations. The HR Managers needs to handle this sensitive situation sensibly as making that tough transition shouldn’t be an unpleasant bolt from the blue for employees.
Anticipate
Organizations should periodically assess their operations and processes and review team and individual performance of employees so that the organizational functionality aligns with the investor’s expectations.
Acknowledge
Once the problem or trend of nonperformance on the part of the employee is identified, address the situation proactively.
Align
Properly align with the group as without a proper alignment it is complex to manage an uncertainty in an organization. Alignment is a way leaders can arrange the elements of their company to work together to achieve business objectives.
Assist
Assist the employees by being clear about your expectations for the beginning. Communicate it throughout the multiple rounds of interviews. Eventually, when people are laid off, they understand where the employer is coming from.
Top Brass and HR Managers should Handle layoffs with empathy
Employees around the globe have been at the receiving end with little to no empathy during Tech layoffs. This goes without saying about the firings by one of India’s top edtech companies and from a global perspective how some tech conglomerates are dealing with employees. The workers claim that the business used unethical tactics and corned and compel them to sign a pre-written letter of resignation.
Amazon’s workforce also reacted harshly to the decision of termination. “I don’t even know if I want to work for this company anymore. This is a horrendous way to treat people,” said a senior manager. “The truth of the matter is that if the company was more transparent, we wouldn’t have this. Now you have most of the population wondering if they are next,” told another.
A change creates a lot of extreme emotions, for example, denial, frustration, or anger, which can negatively impact the mental health of people in the long run. So, it’s very important to give people time to recover.
For HR managers, there will be three fundamental basics of empathetic layoff
- Compassion
- Patience
- Effective Communication
A people manager should never forget to be compassionate when having that difficult conversation. He/she must be forbearing enough to listen to them and focus to deliver the news through an effective communication. It is highly advisable to resorting to phone calls, zoom calls or other virtual sources while firing an employee. There will be serious repercussions for the employee who lost his job losing his bread and butter leading to a serious mental and emotional stress. Top rung at the HR must focus on the messaging to make the best out of a bad situation.
Is there any other Alternative to layoffs
The reality is whether the top brass conduct the Tech layoffs with kindness or cruelty, the result is the same, lost jobs! Hence, considering some alternatives to termination may help HR managers avoid all the drama and the aftermath and resulting outcomes.
Before finalizing terminations, management must address the following fundamental criteria
- Are there any other operational costs that can be minimized instead of imposing layoffs?
- Is there any way the MNCs cut the cost of promotions and honestly ask themselves is it necessary to sign up celebrities for promotional campaigns?
- Do new facilities really need to be constructed?
- Are there recurring expenses that can be cut instead?
If cutting these expenses will not work, then the focus must shift to another set of questions
- Are there any other ways people be redeployed to other roles internally or to low-cost cities, especially where the expenses are lower?
- Is it possible through restructuring the salary rather than resorting to layoffs?
Will staffing agencies get affected by layoffs in 2023?
Staffing Agencies may suffer because of layoffs, for the time being, some businesses are beginning to feel the heat of layoffs, the recession and COVID may be the major reason for the layoffs as online activity peaked during the lockdown. As a result, most social media companies recruited in large numbers; however, once the lockdown was pulled and life restarted to normal, people began to minimize their use of social media; this could be the primary reason for the layoffs.
Conclusion
Finally, while we deliberate on layoffs and seek to understand the best practices for employee terminations, don’t forget about those workers who are fortunate enough to keep their jobs. Many will now face increased workloads and pressure to perform. This may lead to overwork and a lack of job satisfaction.
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