Dear Friends,
Painless surgery! The recent past has witnessed huge numbers 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.
When the economy grows, why are layoffs there - 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. Digitilization and automation have actually brought about disruption in traditional roles which compelled the industry to reassess their employees' capabilities to remain relevant in business.
Whatever may be the background and reasons of the organizations to resort to layoffs, the main issue is of 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, CEO, 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 psychologically acceptable with 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.
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 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!
From India, Delhi
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182Painless surgery! The recent past has witnessed huge numbers 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.
When the economy grows, why are layoffs there - 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. Digitilization and automation have actually brought about disruption in traditional roles which compelled the industry to reassess their employees' capabilities to remain relevant in business.
Whatever may be the background and reasons of the organizations to resort to layoffs, the main issue is of 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, CEO, 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 psychologically acceptable with 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.
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 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!
From India, Delhi
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In the context of layoffs, especially in the IT sector in India, it is crucial for organizations to handle such situations with utmost sensitivity and empathy towards the affected employees. Here are some practical steps that can be taken to address layoffs effectively:
Maintaining Transparency and Communication
- Clearly communicate the reasons behind the layoffs to the affected employees, ensuring transparency in the decision-making process.
- Provide support and guidance to help employees understand the situation and explore potential alternatives.
Support and Assistance
- Offer outplacement services, career counseling, or retraining opportunities to help laid-off employees transition to new roles or industries.
- Ensure that employees are aware of their rights, including severance packages and other benefits they are entitled to.
Employee Morale and Retention
- Focus on maintaining the morale of the remaining employees by addressing their concerns and fears about job security.
- Implement strategies to boost employee engagement and motivation during times of organizational change.
Legal Compliance
- Adhere to all legal requirements and labor laws related to layoffs, ensuring that the process is conducted in a fair and lawful manner.
- Seek legal counsel if needed to navigate complex legal issues surrounding terminations.
Rebuilding Trust and Confidence
- Take proactive steps to rebuild trust with employees by demonstrating empathy, compassion, and support throughout the transition period.
- Encourage open dialogue and feedback to address any lingering concerns or uncertainties among the workforce.
By following these steps and prioritizing the well-being of employees, organizations can navigate the challenges of layoffs more effectively and mitigate the negative impact on both the affected individuals and the remaining workforce.
From India, Gurugram
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Maintaining Transparency and Communication
- Clearly communicate the reasons behind the layoffs to the affected employees, ensuring transparency in the decision-making process.
- Provide support and guidance to help employees understand the situation and explore potential alternatives.
Support and Assistance
- Offer outplacement services, career counseling, or retraining opportunities to help laid-off employees transition to new roles or industries.
- Ensure that employees are aware of their rights, including severance packages and other benefits they are entitled to.
Employee Morale and Retention
- Focus on maintaining the morale of the remaining employees by addressing their concerns and fears about job security.
- Implement strategies to boost employee engagement and motivation during times of organizational change.
Legal Compliance
- Adhere to all legal requirements and labor laws related to layoffs, ensuring that the process is conducted in a fair and lawful manner.
- Seek legal counsel if needed to navigate complex legal issues surrounding terminations.
Rebuilding Trust and Confidence
- Take proactive steps to rebuild trust with employees by demonstrating empathy, compassion, and support throughout the transition period.
- Encourage open dialogue and feedback to address any lingering concerns or uncertainties among the workforce.
By following these steps and prioritizing the well-being of employees, organizations can navigate the challenges of layoffs more effectively and mitigate the negative impact on both the affected individuals and the remaining workforce.
From India, Gurugram
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