This is a Guest Post by Ms. Yogita Tulsiani, MD & Co-founder, iXceed Solutions (Global Tech-Recruiter Provider).
The second wave of layoffs in the business world is forming as a result of the widespread fear of a recession. When the epidemic started, many talent managers were obliged to make difficult decisions and make layoff announcements. Businesses changed the composition and size of their workforces as a result. Businesses are disrupted by global market conditions and a tremendous technology wave sweeping across sectors as uncertainty approaches.
Businesses will undergo significant changes as a result of the technological rollout, therefore in order to be prepared for the transition, organisations shouldn’t view layoffs as routine procedure. The extensive use of technology across industries has completely changed how people interact, cooperate, and work. Organizations see technological advancements as a result, and they engage in layoff procedures to automate human occupations. Over 859 tech companies worldwide fired more than 1 lakh workers in 2022, according to statistics.
In the upcoming months, numerous occupational roles will lose their relevance due to the accelerated digital revolution. While many businesses have increased their staff by twofold to keep up with the rising demand of constantly changing customer demands, the majority have also carried out sizable layoff campaigns to reduce costs. Additionally, because to the challenging funding climate, entrepreneurs are cash-trapped, which might cause significant harm to the ecosystem.
At this time, it becomes imperative for talent managers to work on robust planning for strategies to help their organizations avoid being a part of a second layoff as it could have long-term repercussions on the brand image.
Freeze new recruiting
Directing a cutback drive isn’t the best way to chop down worker costs. Businesses must deliberate about their financial operations. Instead of working on strategies to make layoffs less painful for employees and to make the transition for the business easier, talent managers should focus on developing a freeze strategy in order to achieve financial stability. During the wave of layoffs, businesses can perform well by freezing new hires and strategically positioning employees. While reducing a significant portion of the organization’s budget, this gives the company more time to reevaluate human resources investment areas.
Encourage flexibility to WFH
WFH should be encouraged to be flexible. Organizations can save money by making the workplace more comfortable. Leasing and maintaining an office space incur significant expenses. Incentivizing employees to work from home or any other location can significantly reduce costs and reduce employee stress for both the company and its workforce. Instead, in order to facilitate a more seamless transition and cultivate a work-from-home culture, businesses should make investments in remote collaboration tools like strengthening cybersecurity infrastructure.
Cutting down other employee benefits
Eliminating all other employee benefits is an additional significant means of avoiding layoffs due to cost savings. Employees are not affected by pay cuts, but they do help businesses save a lot of money to strengthen their finances. Similarly, during the crisis, cutting employee bonuses and incentives proves to be a better option than firing them. Long-term work-from-home policies have been implemented by many businesses for employees who are willing to work from anywhere and risk losing their jobs.
Prioritize in-house upskilling:
Upskilling is a tried-and-true strategy for surviving layoffs. Organizations all over the world are moving toward automation as a result of the pandemic’s disruptions to businesses, necessitating advanced skill sets. In the midst of the wave of layoffs, businesses can set up in-house upskilling programs for their employees to prepare them for new roles. In addition to assisting businesses in seizing lucrative market opportunities, this will also result in an upward career trajectory for employees. Building a strong workforce is always a success for businesses that hold regular sessions for employees to learn new skills.
Bottom Line
In the midst of the second round of layoffs, the majority of businesses are instructing their talent managers to spend their time developing humane employee layoff strategies rather than sending brutal emails. Instead, they should use the HR team’s time to develop employer branding and strategies to avoid layoffs. The industry is experiencing a meteoric rise in layoffs, and any business that intends to do so can stay ahead of the competition for years if it employs thoughtful strategies and looks for other options.
