In 2024, the primary cause of Layoffs is the low performance of employees rather than over-hiring ! Why not opt for Redeployment rather than Layoffs?
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? HR leaders expect layoffs to affect 16% of their workforces
?? Layoffs were often driven by a range of factors but led by over-hiring in previous years, the need to cut costs, and restructuring.
?? Fewer HR leaders are citing over-hiring as the primary reason behind layoffs, instead pointing to performance issues, a misalignment in employee skills, and financial pressures.
?? 25% of HR leaders are worried about burnout as a result of layoffs.
?? Any hiring freeze ignoring the skills cost risks depriving the organization of fresh talent with hard-to-find skills.
82% of HR leaders said they considered redeploying workers as a layoff alternative, according to a new interesting research published by LHH using data from a survey of 3,011 HR leaders and 8,101 white-collar workers across nine countries.
?The layoff trend around the world
Layoffs continue to be widespread but appear to be slowing - Layoffs continue to be widespread but appear to be slowing. Almost half (48%) of surveyed HR leaders said their organization has conducted layoffs in 2024 or is planning to do so.
The is a disconnect between HR leaders and employees’ understanding of post-layoff support.
?Top five drivers of layoffs in 2024
Researchers discovered that the top five drivers of layoffs have changed significantly since last year, when ‘over-hiring in previous years’ was top with 41% of HR leaders citing it as a reason for layoffs.
The top Drivers of layoffs indicating ‘low performance’ and ‘’wrong skill sets’ are closely related and likely overlap.
The cost-cutting imperatives (28%) have continued to be a significant factor driving layoffs.
?Top HR leaders concerns around layoffs
Researchers noticed that only 2% of HR leaders said they had no concerns about the impact of layoffs on the organization.
They found that no single issue emerged as the biggest. Less than a single percentage point separated the entire top five, and only four percentage points separated the full range of 10 potential impacts.
?Why not opt for Redeployment rather than Layoffs?
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It is a common misconception that layoffs are the only option for companies, but there is an alternative: redeploying employees to different roles or departments.
82% of HR leaders have considered redeployment as an alternative to layoffs. The most notable shift, however, is the increase in the number of HR leaders who now have a redeployment program established.
?? Redeployments are not a total solution, but they address many of the challenges HR leaders face.
?? Researchers have determined that a well-managed redeployment program, particularly one that is integrated with current skills and leadership development initiatives, can assist individuals in refining the skills required for future endeavors. It enables them to uncover their strengths or new interests without the necessity of seeking a new employer.
Researchers advise that leaders, managers, and employees each experience stress differently, and they advocate for organizations to provide support to individuals at every level during challenging times:
?? Don’t get stuck - use skilling and mobility to keep moving forward:
Think of your organization as a body of water. It benefits from movement and flow. Investing in talent skilling and mobility and in new talent, keeps it fresh and healthy. Stagnant water breeds nothing but negatives
Based on the rapidly-changing needs for various hard and soft skills, researchers strongly encourage employers to reskill, upskill, and redeploy workers when appropriate and feasible.
?? Tackle burnout head-on
Proactively identify workers at risk of burnout and offer the support options they need, whether enhancing their skills to perform better in their current position, redeploying them into a more suitable role, or something else
??Expand support for layoff workers – and tell them about it
Be sure to ? Simplify your information as much as possible ? Use a credible source to deliver the messages ? Be consistent in your delivery and content of information ? Release accurate information as soon as you can
?? ???? ???????????????? ????????:
This insightful research indicates that layoffs are a stressful and emotional period for all members of an organization, including those not directly affected. Alternatives such as hiring freezes and redeployment exist, but the key is to effectively communicate the array of support options available to laid-off workers. The researchers' recommendations are motivating, suggesting that employers should reskill, upskill, and redeploy workers when it is appropriate and feasible.
Thank you ?? LHH researchers team for these insightful findings:
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Industry Veteran | Exploring Future of Work | Great Manager’s Coach & Mentor
6 个月Its all about Economics BUT “At the end of the day?people?won't remember what you said or did, they?will remember how?you?made them feel.” ― Maya Angelou. (after all employees are also customers) ?? A good share Nicolas BEHBAHANI. ?? In India the IT firms (along with others) had frozen recruitment - AI & Slow growth (Though India is growing @ 7% GDP). Few Giants have had massive lay-off due to change in plans. ?Instead of Lay-offs Organizations can - Redeploy, Train for future, Furloughs, Try Resource Sharing (we did with Gulf Companies - Refineries), etc.. ??♂? Remember, every decision echoes beyond boardrooms & spreadsheets. It resonates in the lives of employees, their families, & the communities they belong to. - Let’s strive for a balance where Economics & Empathy coExist.?
Business Humanizer/L&D/Executive Coach/Leadership mentor/ HR Consultant / HR Professor/Soft skills Training/Gcologist/IT Recruitment. Understanding business & people for boosting Engagement. HR influencer Spain
6 个月Thanks again Nicolas BEHBAHANI for such a great data this week as well, always inspiring the HR community! Layoffs may hurt companies. Redeployment can help as an option. Instead of letting go of these valuable employees, you redeploy them in another part of theorganization where their skills are needed and useful. In this way, you reduce the number of layoffs and retain employees that may have taken months or years to train, saving you money, time and reducing the morale impact of too many changes and chaos. Redeployment can be a valuable while managing human resources during a crisis.
Human Resource Professional | MBA | Coporate Recruiting Professional- ASA | Ex-Wirtgen Group,A John Deere Company
6 个月Very insightful! I believe the conversation should move towards creating a ‘dynamic talent ecosystem’ within organizations. Instead of waiting for a downturn to trigger redeployment, companies should proactively foster a culture where employees are regularly rotated through various roles and projects. We should also explore how predictive analytics can revolutionize workforce management. By anticipating performance issues and skill gaps before they become critical, we can tailor development programs and role adjustments to meet the evolving needs of both the organization and its employees. Organizations should not wait for performance problems or skill gaps to surface; rather, they should cultivate a culture of continuous learning and adaptability. HR leaders must champion this shift from reactive to proactive workforce management. Thank you for sharing this valuable research!
PhD, DBA- HR ?? | Aspiring CHRO/HR Director ?? | HRBP | CPHR, SHRM-SCP ?? | Ready for Strategic Leadership
6 个月Engaging employees through reskilling and mentoring can foster adaptability. Nicolas BEHBAHANI
Certified Executive Coach | Leadership Trainer | Performance Management | Employee Engagement
6 个月Nicolas BEHBAHANI Its shocking to see that three of the 5 drivers of layoffs are totally preventable. When organizations don't have a talent management policy in place, no career progression path, no succession planning or capability development programs, this outcome is only to be expected. The irony is that the reason for letting people go (cost cutting) is actually adding to the cost to the organization in myriad ways.