Dear Friends,
Look before you leap!
With job losses of nearly one lakh in the last quarter of 2022 and the first three months of 2023 in major tech giants globally, it is enough to scare and create turmoil for the HR function. It is unpleasant, depressing, and demoralizing for working people at large, spreading insecurity and creating a negative work environment, posing a survival question of whether I would be next. Though the major job loss has been in the West, it has impacted the tech companies and startups in India also.
Major job loss and its implications
Major job loss, commonly termed as a layoff in the business world, happened in tech giants and the Edtech sector. The reasons for this may vary for individual organizations, but it has ultimately sparked a debate on leadership ability, wisdom, and vision. Why were the issues not foreseen, and why were preventive actions not taken to avoid such a situation? Resorting to abrupt mass layoffs is often the result of pressing the panic button without assessing the ground reality, assuming a threat of global recession. In many tech companies and Edtech startups, hirings continued until a few months before downsizing.
Whatever the case may be, it is HR at the center who has to execute the infamous task, and that too with care and compassion. It is HR whose strategies and actions in such bad times have the greatest impact on the organizations. Their task in each downsizing exercise is to cut direct operating costs, which are about people, and retain the talent and keep them engaged. Successful implementation of downsizing is a significant task for any HR professional in their career.
Questions on downsizing decisions
One point can be raised here: Have other options of indirect cost-cutting been considered and implemented? Is HR involved in the decision-making of downsizing, or are they simply asked to execute the decision of layoff at the first instance to maintain profit margins and reduce operating costs? There has been no study to indicate that layoffs have improved the organization's effectiveness and created a competitive edge. Instead, there are indications that after layoffs, organizations face brand crises, increased employee dissatisfaction and disengagement, low morale, and increased attrition of talent. This results in further hiring at a higher cost with a lag in skills required to take on the job immediately.
The cover story
The cover story of this issue is on the possible impact of layoffs in India, the HR role in executing it if unavoidable, making it less painful as far as possible, and insulating the organization from possible legal threats arising out of such action. Industry HR experts have discussed the nuances of this critical phenomenon and ways to act upon it in preventive as well as curative modes.
If you like it, let us know. If not, well, let us know that too.
Happy Reading
Regards,
Anil Kaushik, Business Manager - HR Magazine B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) Mob.: [Phone Number Removed For Privacy-Reasons] www.businessmanager.in
From India, Delhi
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181Look before you leap!
With job losses of nearly one lakh in the last quarter of 2022 and the first three months of 2023 in major tech giants globally, it is enough to scare and create turmoil for the HR function. It is unpleasant, depressing, and demoralizing for working people at large, spreading insecurity and creating a negative work environment, posing a survival question of whether I would be next. Though the major job loss has been in the West, it has impacted the tech companies and startups in India also.
Major job loss and its implications
Major job loss, commonly termed as a layoff in the business world, happened in tech giants and the Edtech sector. The reasons for this may vary for individual organizations, but it has ultimately sparked a debate on leadership ability, wisdom, and vision. Why were the issues not foreseen, and why were preventive actions not taken to avoid such a situation? Resorting to abrupt mass layoffs is often the result of pressing the panic button without assessing the ground reality, assuming a threat of global recession. In many tech companies and Edtech startups, hirings continued until a few months before downsizing.
Whatever the case may be, it is HR at the center who has to execute the infamous task, and that too with care and compassion. It is HR whose strategies and actions in such bad times have the greatest impact on the organizations. Their task in each downsizing exercise is to cut direct operating costs, which are about people, and retain the talent and keep them engaged. Successful implementation of downsizing is a significant task for any HR professional in their career.
Questions on downsizing decisions
One point can be raised here: Have other options of indirect cost-cutting been considered and implemented? Is HR involved in the decision-making of downsizing, or are they simply asked to execute the decision of layoff at the first instance to maintain profit margins and reduce operating costs? There has been no study to indicate that layoffs have improved the organization's effectiveness and created a competitive edge. Instead, there are indications that after layoffs, organizations face brand crises, increased employee dissatisfaction and disengagement, low morale, and increased attrition of talent. This results in further hiring at a higher cost with a lag in skills required to take on the job immediately.
The cover story
The cover story of this issue is on the possible impact of layoffs in India, the HR role in executing it if unavoidable, making it less painful as far as possible, and insulating the organization from possible legal threats arising out of such action. Industry HR experts have discussed the nuances of this critical phenomenon and ways to act upon it in preventive as well as curative modes.
If you like it, let us know. If not, well, let us know that too.
Happy Reading
Regards,
Anil Kaushik, Business Manager - HR Magazine B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) Mob.: [Phone Number Removed For Privacy-Reasons] www.businessmanager.in
From India, Delhi
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