Painless surgery!
The recent past has witnessed a huge number of layoffs in Indian organizations, specifically in IT, telecom, and other sectors. When we talk about layoffs, it is not in strict legal terms because, in a legal sense as enumerated in employment regulations, it does not mean the termination of jobs as we refer to here in common understanding. Reorganization, restructuring, downsizing, right-sizing—by whatever name we call this exercise—it leads to the termination of employment of people with the belief that it will cut costs, increase revenues, and improve efficiency. Some surveys have indicated that layoffs may continue until 2022.
Why are layoffs happening?
When the economy grows, why are layoffs there? This is a question an employee who suffers the burn of job loss asks quietly. Why were the company managers lying or unrealistically upbeat sometime before this incident of layoff? Why was an employee who scored the highest in the appraisal and got a promotion a few days before asked to leave? Not answering and handling these issues intelligently with sensitivity brings a bad name and ill will to the organization. The maximum layoffs happened in the IT sector due to the reason that this sector is shifting from the concept of high volume to high value. It is moving towards non-linearity, delinking the revenue growth with headcount. AI, machine learning, and other new-age technologies have drastically changed the skill set requirements. In some cases, layoffs may also be there due to the inability of the team to generate the required profits on projects. Digitalization and automation have actually brought about disruption in traditional roles, which compelled the industry to reassess their employees' capabilities to remain relevant in business.
Handling layoffs with sensitivity
Whatever may be the background and reasons for the organizations to resort to layoffs, the main issue is successful execution. For any organization, letting people go is an unfortunate and unpleasant event full of high negative emotions. Since this exercise involves the human element, CEOs, HR, and all functional managers need to demonstrate a high level of sensitivity and positivity in handling employees. It has two dimensions. One is to communicate and make it psychologically acceptable with the least pain that he has to go; another is to maintain the morale of remaining employees who are not axed. Their doubts and fears about the future must be addressed honestly. Managers handling layoffs should have a high quality of communication skills with empathy and compassion; otherwise, the whole exercise may backfire. Legal compliances are also to be ensured. Managers should provide all possible physical and psychological support with dignity to help them rehabilitate as early as possible because, in the long run, it is not remembered why the person was laid off, but he will remember how he was treated. You cannot make a pig beautiful by putting lipstick.
Cover story: September 2018
The September 2018 cover story is all about this painful phenomenon, which is the reality of the present time in the changing business world. Experts offer their advice on how to avoid and choose it as a last resort, how to handle it, and how to regain the confidence of remaining talent and much more...
If you like it, let us know. If not, well, let us know that too.
Happy Reading!
The recent past has witnessed a huge number of layoffs in Indian organizations, specifically in IT, telecom, and other sectors. When we talk about layoffs, it is not in strict legal terms because, in a legal sense as enumerated in employment regulations, it does not mean the termination of jobs as we refer to here in common understanding. Reorganization, restructuring, downsizing, right-sizing—by whatever name we call this exercise—it leads to the termination of employment of people with the belief that it will cut costs, increase revenues, and improve efficiency. Some surveys have indicated that layoffs may continue until 2022.
Why are layoffs happening?
When the economy grows, why are layoffs there? This is a question an employee who suffers the burn of job loss asks quietly. Why were the company managers lying or unrealistically upbeat sometime before this incident of layoff? Why was an employee who scored the highest in the appraisal and got a promotion a few days before asked to leave? Not answering and handling these issues intelligently with sensitivity brings a bad name and ill will to the organization. The maximum layoffs happened in the IT sector due to the reason that this sector is shifting from the concept of high volume to high value. It is moving towards non-linearity, delinking the revenue growth with headcount. AI, machine learning, and other new-age technologies have drastically changed the skill set requirements. In some cases, layoffs may also be there due to the inability of the team to generate the required profits on projects. Digitalization and automation have actually brought about disruption in traditional roles, which compelled the industry to reassess their employees' capabilities to remain relevant in business.
Handling layoffs with sensitivity
Whatever may be the background and reasons for the organizations to resort to layoffs, the main issue is successful execution. For any organization, letting people go is an unfortunate and unpleasant event full of high negative emotions. Since this exercise involves the human element, CEOs, HR, and all functional managers need to demonstrate a high level of sensitivity and positivity in handling employees. It has two dimensions. One is to communicate and make it psychologically acceptable with the least pain that he has to go; another is to maintain the morale of remaining employees who are not axed. Their doubts and fears about the future must be addressed honestly. Managers handling layoffs should have a high quality of communication skills with empathy and compassion; otherwise, the whole exercise may backfire. Legal compliances are also to be ensured. Managers should provide all possible physical and psychological support with dignity to help them rehabilitate as early as possible because, in the long run, it is not remembered why the person was laid off, but he will remember how he was treated. You cannot make a pig beautiful by putting lipstick.
Cover story: September 2018
The September 2018 cover story is all about this painful phenomenon, which is the reality of the present time in the changing business world. Experts offer their advice on how to avoid and choose it as a last resort, how to handle it, and how to regain the confidence of remaining talent and much more...
If you like it, let us know. If not, well, let us know that too.
Happy Reading!
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