Last One In First One Out: Hiring During Layoffs

Is the last one in REALLY the first one out? Well, in short, no. Seeing a company hiring during layoffs is understandably daunting. The United States has seen a wavering market for a while now. While the looming layoffs it may feel like we are in a nosedive, but there is likely a peak coming soon. However, it is important to remember that if a company is still hiring while laying off, the role they are hiring for is critical. Below are a few questions to consider if you’re looking to join a new company during layoffs.

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What caused reduction in the workforce?

Asking the interviewer why they had to resort to layoffs will allow you to understand what sector of the company will primarily be affected. For example, if they are laying off talent acquisition you may see less hiring in the coming year.

What percentage of staff was laid off?

This will show you how much trouble the company may be having without directly asking. If they were in a position to lay off hundreds of people simultaneously, the company may not be doing well so they are reaching for anything to help. If 65% of the company was laid off in one fell swoop, it may be cause for concern.

How were those who survived the layoffs selected?

Not many employees are able to survive layoffs. Asking how many were able to survive and why will show you how the company thinks of their people. They may have kept the top performers, most seniority, or even the new grads that are eager to learn.

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There is an old Wall Street adage, “Bulls and bears make money, but pigs get slaughtered.” This aphorism means that you need to know when a party is ending. Within the job-search context, you don’t want to make a nominal move for increased salary. You could end up losing your new job shortly after starting, as the confluence of a declining stock market, an erosion of the wealth effect, rampant inflation and supply chain disruptions spook companies into cutting costs, which includes firings and furloughs. This leads to a recruiting adage - when things go bad, you don’t want to be the “last one hired and first one fired.” There is no guarantee that a job will be secure whether you apply during a mass hiring period or during a layoff period. The best thing that you can do is remain prepared and do the best work that you can. When interviewing for roles, you are interviewing the company as well, so never feel nervous to ask the hard-hitting questions that you may be worried about.

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Grace joined Precision Recruiting Solutions Group? in 2022. She began her career as an HR Intern for Victorian Finance, then spent time as a Learning and Development Assistant with Levin Furniture. She graduated from Robert Morris University with a Bachelor's degree in Social Sciences while minoring in Human Resource Management. When she is away from work you can find her reading and crocheting as she spends time with her Australian Cattle Dog named Pico. Grace and her fiancé, Brendan, can also be found exploring downtown Pittsburgh, and trying new restaurants.