Invest in People, Not Pink Slips: Why Enablement Beats Layoffs Every Time

In the past six months, the corporate world has witnessed massive layoffs that have shaken the very foundation of job security in America. Companies like Meta, Amazon, and Google have collectively laid off tens of thousands of employees—21,000 at Meta, 18,000 at Amazon, and 12,000 at Google—all in the name of cutting costs and staying competitive.

Even companies known for their stability, like Intuit and Cisco, have not been immune, with Intuit laying off 1800 employees and Cisco cutting 4,000 jobs. These staggering numbers might make layoffs seem like the only viable option for companies facing economic pressures. But what if there’s a better way? What if, instead of handing out pink slips, companies invested in their most valuable asset—their people?

Investing in training and development not only keeps your workforce intact but also strengthens your business for long-term success.

Here’s why enablement beats layoffs every single time.

1. Preserve Institutional Knowledge and Expertise

Laying off employees means losing years of experience and deep knowledge that can’t be replaced overnight. These are the people who understand the intricacies of your operations, the culture that drives your success, and the unwritten rules that keep things running smoothly. By investing in training, you keep this critical knowledge within your company, ensuring continuity and stability in times of change.

Companies that invest in their employees’ growth, particularly through training programs, are often the ones that thrive. Research consistently shows that retaining experienced employees through training leads to higher productivity and innovation. When employees grow with your company, they’re not just workers—they’re invaluable resources who can help steer your business toward greater success.

2. Boost Morale, Loyalty, and Engagement

Layoffs can shatter employee morale, leading to a disengaged workforce that’s more focused on survival than innovation. On the other hand, when you invest in training, you’re telling your employees that they matter—that they’re worth the investment. This boost in morale translates into higher levels of engagement and loyalty, which are critical for maintaining a productive work environment.

Gallup studies show that companies with high employee engagement outperform their competitors. Engaged employees are not just more productive—they’re also more likely to stay with your company, reducing turnover costs and preserving the integrity of your team. When you invest in your people, they invest in you.

3. Long-Term Cost Efficiency

While layoffs may seem like a quick fix to financial woes, they often come with hidden costs. Severance packages, loss of productivity, and the expenses associated with hiring and training new employees can quickly add up. Conversely, investing in training is a more cost-effective strategy in the long run.

Forbes highlights that the cost of replacing an employee can be up to 200% of their annual salary. Compare that with the cost of upskilling—often a fraction of that amount—and the ROI becomes clear. A well-trained workforce is not only more efficient but also better equipped to adapt to new challenges, making your business more resilient in the face of adversity.

4. Foster a Culture of Innovation

Innovation is the key to staying competitive in today’s fast-paced market. A workforce that is continually learning and developing new skills is more likely to bring fresh ideas to the table. By investing in training, you cultivate a culture where innovation thrives—a culture where employees are empowered to think creatively and drive the company forward.

Harvard Business Review notes that companies with strong learning cultures are significantly more likely to innovate. Training programs that emphasize critical thinking, problem-solving, and creativity empower employees to contribute in meaningful ways, ensuring that your company remains at the cutting edge.

5. Enhance Your Brand Reputation

In an era where corporate reputation is paramount, how you treat your employees can have a lasting impact on your brand. Companies that choose to invest in their people, rather than resorting to layoffs, are seen as more responsible and forward-thinking. This positive perception can be a powerful tool in attracting top talent and retaining customers.

According to Glassdoor, companies with a strong employer brand attract more qualified candidates and enjoy lower turnover rates. By focusing on training and development, you not only strengthen your internal culture but also build a brand that resonates with potential hires and customers alike.

6. Prepare for the Future of Work

The future of work is evolving rapidly, with technological advancements reshaping industries at an unprecedented pace. Companies that invest in reskilling and upskilling their workforce are better positioned to navigate these changes. By preparing your employees for the future, you ensure that your company can adapt and thrive, no matter what comes next.

McKinsey predicts that by 2030, millions of workers will need to learn new skills to keep pace with technological changes. Companies that start investing in their employees now will be ahead of the curve, with a workforce ready to meet the demands of the future.

To-Do List for Managers: Protecting Your Team from Layoff Risks

1. Invest in Employee DevelopmentCreate Continuous Learning Programs:?Implement regular training sessions and workshops to keep your team’s skills sharp and relevant. Encourage employees to pursue certifications or advanced training in emerging technologies and methodologies.Personalized Development Plans:?Work with each employee to develop a personalized career growth plan that aligns with both their aspirations and the company’s needs. Regularly review and update these plans to ensure progress and alignment with business goals.
2. Improve Communication and TransparencyRegular Check-Ins:?Maintain open lines of communication with your team. Regular one-on-one meetings can help you gauge employee concerns and provide them with updates on the company’s health and strategy.Transparent Decision-Making:?When tough decisions need to be made, explain the rationale behind them clearly to your team. Transparency helps build trust and reduces the anxiety that often precedes layoffs.
3. Focus on Cross-Training and Role DiversificationCross-Functional Training:?Encourage employees to learn skills outside their primary roles. This not only enhances their value to the company but also ensures operational flexibility during times of change.Role Rotation Programs:?Implement job rotation programs where employees can temporarily work in different departments. This increases their understanding of the business and makes them more versatile.
4. Prioritize Employee Well-BeingMental Health Resources:?Provide resources and support for mental health and stress management. Employees who feel supported are more likely to remain engaged and productive. Work -Life Balance:?Encourage a healthy work-life balance by promoting flexible working hours, remote work options, and adequate time off. Happy employees are more productive and less likely to burn out.
5. Build a Resilient Company CultureFoster Collaboration:?Create a culture where teamwork and collaboration are encouraged. Employees who work well together are more likely to support each other and the company during challenging times.Celebrate Achievements:?Regularly recognize and reward employees’ contributions. Acknowledging successes boosts morale and reinforces the value of each team member’s work.

To-Do List for Employees: Protecting Yourself from Layoff Risks

1. Continually Update Your SkillsStay Educated:?Regularly take online courses, attend workshops, or pursue certifications in your field to keep your skills current. Platforms like Coursera, Udemy, and LinkedIn Learning offer a wealth of resources.Learn New Technologies:?Stay ahead of industry trends by learning new technologies or methodologies relevant to your role. This makes you more valuable and less replaceable.
2. Diversify Your Skill SetCross-Training:?Seek opportunities to learn about different functions within your company. Understanding other roles makes you more versatile and valuable.Soft Skills Development:?Work on improving soft skills like communication, leadership, and problem-solving. These skills are often critical in times of change and can set you apart.
3. Network Within and Outside Your CompanyInternal Networking:?Build strong relationships with colleagues across different departments. A broad internal network can open up new opportunities within your company.External Networking:?Attend industry events, join professional associations, and maintain an active LinkedIn presence. Networking can provide leads and opportunities if you ever need to look for a new job.
4. Maintain a Strong Personal BrandUpdate Your Resume and LinkedIn Profile:?Regularly update your resume and LinkedIn profile with new skills, experiences, and achievements. A polished online presence can attract recruiters and job offers. Build an Online Portfolio:?If applicable, create a portfolio showcasing your work. This is particularly important in creative and tech fields, where tangible proof of your abilities can make a significant difference.
5. Be Proactive in Career PlanningRegular Career Assessments:?Periodically assess your career goals and progress. Are you growing in your current role? If not, consider seeking new opportunities within or outside your company. Seek Feedback:?Regularly ask for feedback from managers and peers to identify areas for improvement and growth. Constructive feedback can guide your personal development and help you stay aligned with company expectations.
6. Prepare for the UnexpectedEmergency Savings:?Build an emergency fund that can support you for at least six months in case of job loss. Financial security gives you the flexibility to take your time finding the right next opportunity.Stay Informed:?Keep an eye on your industry’s trends and your company’s financial health. If layoffs seem likely, start preparing early by updating your resume and networking.

Double Down on Your People or Risk Losing the Game

Layoffs might seem like the quick and easy way to balance the books, but they are nothing more than a short-term band-aid that can leave deep, lasting scars on the organization. They strip a company of institutional knowledge, devastate employee morale, and tarnish the brand's reputation. Worse yet, they leave managers and team members scrambling to fill the very gaps you've created when the market rebounds.

The real winners in this game aren't the companies slashing headcounts to appease Wall Street; they're the ones investing in the very talent that will carry them through the storm and beyond. When you choose to invest in training and development, you’re not just protecting your workforce—you’re fortifying the future of your business. You’re cultivating a culture of innovation, loyalty, and resilience that no layoff can ever achieve.

The choice is clear: you can take the easy route and risk your company’s long-term viability, or you can be bold, invest in your people, and secure a future where your company doesn’t just survive—it thrives. In today’s competitive market, where innovation and adaptability are the keys to staying ahead, the companies that double down on their people will be the ones left standing. Don’t just cut costs—cut the excuses. It’s time to invest in the only asset that truly matters: your people. The future of your company depends on it.

Wally Bruner has been working in the professional services, sales and enablement arena for some of the leading technology companies for the last 30 years. Wally is the founder of Early Career Partners, is a recognized leader, pioneer and activist in the early career arena, having designed, launched, and led award-winning onboarding and training programs for front-line sellers and solutions engineers at CA Technologies, Salesforce, Amazon Web Services, and Oracle. Additionally, Wally co-leads the Cross Academy Association for Early Career Programs, a global professional association that develops best practices and frameworks for early career practitioners and organizations. Wally's mission is to cultivate nascent talent and create a synergistic force that propels the early career field to new heights.