How to build a perfect HR strategy in the layoff wave
The second round of layoffs in the business sector has emerged as a result of the global concern about a recession. Many talent managers were forced to make tough decisions and announce layoffs when the pandemic started. Businesses changed the size and structure of their workforce as a result. Businesses are disrupted by global market conditions and a massive technology wave that is sweeping across sectors as the uncertainty looms.
Businesses will undergo significant transformations as a result of the technology’s introduction, and in order for them to feel at ease with the change, organizations should not view layoffs as a standard procedure. The way people communicate, work together, and collaborate has changed as a result of the widespread adoption of technology across industries. Because of this, organizations experience technological breakthroughs and resort to layoffs to replace human jobs with automated ones. In 2022, the statistics indicate that more than 859 tech companies worldwide will have laid off more than 1 lakh employees.
With sped up advanced change, many work jobs will as of now not be pertinent before very long. To meet the growing demand of ever-changing consumer interests, some businesses have doubled their workforces, while the majority have carried out massive layoff campaigns to reduce costs. Additionally, startups are cash-strapped as a result of the severe funding winter, which could have a significant impact on the ecosystem.
As a result of the potential for a second layoff to have long-term effects on the brand’s image, talent managers must now focus on thorough planning for strategies that will assist their organizations in avoiding one.
Freeze new hiring
Conducting a layoff drive is not the only way to cut down employee expenses. Organizations have to deliberately think about their business finances. To balance the finances, talent managers should work on a freezing strategy rather than working on strategies to make layoffs less painful for employees and smoothen the transition for the company. Freezing new hiring in line with positioning employees strategically can help organizations perform well during the layoff wave. This provides more time to re-evaluate business investment areas in terms of human resources while cutting down a major part of the organization’s budget.
Encourage flexibility to WFH
To cut down business expenses, organizations can adopt an approach of bringing ease in the work culture. A significant cost is spent in leasing out and operating an office space. Encouraging work from home or anywhere can significantly bring down a huge expense, making it less stressful for the organization as well as its employees. Instead, organizations should invest in remote collaboration tools like strengthening cybersecurity infrastructure to protect data and have a smoother transition and work-from-home culture.
Cutting down other employee benefits
Another significant way of avoiding layoffs for cutting expenses is to cut down benefits across the board. Pay cuts do not impact employees but help businesses save hefty amounts to add financial strength. Similarly, reductions in employee bonuses and incentives prove to be a better option than making them lose their job amid the crisis. Many organizations have adopted a long-term work-from-home policy for employees willing to work from anywhere and can have a pay cut than lose their job.
Prioritize in-house up skilling
Up skilling 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 up skilling 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.
In the midst of the second round of layoffs, the majority of businesses are instructing their talent managers to devote their time rather than sending brutal emails to developing strategies for humanely terminating employees. 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.
(The author is Ms. Yogita Tulsiani, MD & Co-founder, iXceed Solutions (Global Tech-Recruiter Provider), and the views expressed in this article are her own)