The labour market is on a shaky ground for the first time in decades. Economies around the world continue to struggle. High inflation rates have been witnessed all around the globe and this affected corporations and start-ups alike.
In recent time we have seen layoffs even from big companies from all sorts of industries, from telecoms to the manufacturing to the hospitality industry. Start-ups have also been on the sharp end of the economy break down with start-ups being forced to downsize or even change/ tweak their business model in order to stay afloat.
It is not lay offs that are rocking the labour market there is also a struggle being witnessed by cooperations around the globe. There is a huge struggle to acquire talent. The focus may have shifted to lay offs but there are huge number of companies struggling with labour shortages.
Employers will need to make important decisions due to the worsening global economy. How can they prevent layoffs? How can they lessen the harm to their employer brands if they are compelled to fire employees? Should businesses retain their talent acquisition teams given the slowdown in hiring? Employers should implement the five recommendations below as the economy falters.
So, what should employers do in these wild waters? Read on to find out.
Consider alternatives to Layoffs
When you fire employees, you lose some of your most important resources—people with in-depth knowledge of your industry, market insight, and connections to your clientele. In fact, researchers who examined every company listed on the New York Stock Exchange between 1980 and 2016 discovered that companies that postponed layoffs as long as possible saw higher stock returns two years later than comparable businesses that let go of employees sooner.
You can come to regret a fast layoff, particularly if the economy recovers swiftly and the labour market tightens up once more.
Exhaust all options, including requesting salary reductions from employees, implementing furloughs, or reducing benefits.
Deal with layoffs the right way
It goes without saying that there is no such thing as a ‘hip hip hurray’ layoffs. The humanitarian thing to do is to carefully implement employment cuts, and it can also protect your employer brand from potential harm.
Much is on the line. Take a look at the severe outcry against businesses that fired employees due to Zoom or outed them by posting their personal information on social media.
It’s crucial to be open and honest in your interactions, to feel sorry for fired workers, and to offer them all the support you can.
Engage the remaining personnel
According to research, employees who stay on at a company face a 41% loss in job satisfaction and a 20% decline in job performance after a layoff. Some people feel guilty about being a survivor or fear for their own jobs.
In such situations the remaining employees will even result to start looking for opportunities elsewhere. In a situation where the employers knows that the remaining workforce is safe there should go ahead and reassure the remaining workforce is valued. One of the ways to do that is by having discussions on career development through additional training, access to more resources etc.
Get your talent acquisition team to work
Employers have been quick to fire their hiring staff during previous downturns. But if you do so, it can make it harder for you to compete for talent when the labour market gets competitive.
Talent acquisition teams can work now to position your business for a recovery in the economy. A decline in hiring gives recruiters more time to work on crucial projects like enhancing business branding, building relationships with potential employees, and upgrading hiring procedures.
It is only natural for companies to result to various measures to tackle a slowing economy however it is more critical for businesses to take a pause and think about the consequences of each and every ,not only employee layoffs, they look to implement.