Laying Off Layoffs

Have your magic wand ready? What if…layoffs were nonexistent going forward? Outlawed, severely penalized by taxes or sharply punished by shareholders – simply out of practice.

Could companies and the modern economy survive? While the economic question is largely debatable, this hyperbolic question is meant to challenge the overused method of balancing the budget.

Realistically, if an organization says, “We don’t want to be the next company to do large layoffs. How can we insulate ourselves?”, then build the following into your strategy:

1. Before adding permanent headcount, consider the longevity of the job.

   1. Could a consultant do it?

   2. Is technology poised to automate it?

   3. Is the role designed to grow and evolve?

2. Maintain a ratio of employees to contingent workers so that during challenging times, you can protect your employees.

3. Ensure your talent strategy is as forward looking as your product strategy.  

4. Up- and reskill your team before you need to transition from one focus/domain to another.

5. Identify new ways to utilize the knowledge, skills and abilities you have for maximum profit.

To the Point

Layoffs come at many costs; despite that, they have become all too common. Let’s return them to a “worst case scenario” by planning our businesses as if they didn’t exist.

Image source: PESTLE Analysis