What’s even harder than laying people off?
Making sure that the survivors don’t start fending for themselves instead of your business.
Managed incorrectly, layoffs can lead to:
- Loss of Star Performers. They’re the most likely to have other offers and most likely to be disillusioned by the betrayal of layoffs.
- Destroyed Morale. Remaining employees lose trust in and commitment to the organization.
- Unrecoverable Penalty Costs. This may cost you more than what you save through layoffs. Decreased productivity, costly mistakes, attrition, outright sabotage, and failure to operate in the best interests of the organization can easily negate the savings of layoffs.
- Vanished Productivity. As the survivors deal with their emotions and struggle to cover vacant positions, up to 80% will simply “check out”.
- Ruined Corporate Reputation. How your former and current employees speak about you can do grave damage to your standing. When things turn around, the most desirable candidates will shun you. This is especially true of the highly mobile under-40 segment.