Laying Off the Layoff Mentality

​After a few years of economic growth and prosperity, layoffs have again, unfortunately, been making headlines since last year.
 
In fact, according to layoffs.fyi, which has tracked tech layoffs globally since the pandemic:
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• More than 150,000 people were laid off in 2022, across more than 1,000 tech companies.

And, as talk of an economic downturn and recession continue to loom, there is the possibility of more in the future.
 
They are obviously a disruptive and emotionally challenging experience for those affected.
 
With a substantial impact in terms of financial stability, confidence and even a person’s sense of identity.

Made even worse when not sensitively handled, as many organizations reportedly have recently failed to do.
 
Yet the impact is not confined only to the affected employees alone.
 
Although their well-being is undeniably of paramount importance, compared to any harm to the organization.
 
Particularly when not well-handled.
 
Because layoffs can also have a detrimental effect on the morale of the remaining employees, and on the reputation and culture of the organization.
 
Regardless of how engaged or committed the employees may have been, or how great the culture.

And from which recovery could take years.

Yet, there are alternatives for organizations, without resorting to layoffs when times get tough:
 

• Reduced work hours or voluntary furloughs.
• Offering voluntary layoff packages.
• Implementing hiring bans.
• Enacting salary freezes, and reduced bonus payouts for a few quarters.
• Scaling back on other expenses such as business travel or real estate holdings.

 
None of which are ideal, but which beat being laid-off, particularly if communicated sensitively and effectively.
 
And which offer several advantages, including preserving morale and motivation, and retaining valuable knowledge and skills within the organization.
 
Not to mention enhancing the organization's reputation as a responsible and ethical employer.