Layoffs are a normal part of business. Over the past year, we’ve seen a lot of news about them, especially in the technology sector. While the number of layoffs seems to be slowing down, we are still seeing them happen, with more than 10,000 in the first month of 2024. So why do we get laid off?
When a round of layoffs happens, it’s not just those who are let go that are affected. The people still employed at the company also feel uncertain and wonder if they will be next. There are feelings of helplessness when circumstances beyond your control impact your job security. According to Harvard Business Review, understanding why people are laid off and knowing what proactive steps you can take to manage your stress levels can help you navigate through a difficult situation.
Lack of Skills Advancement
Companies are now offering more opportunities to learn new skills. However, these programs tend to focus on management skills that will benefit everyone in the organization. While beneficial, this is likely not enough to protect you from a round of layoffs. You must take the initiative to develop your existing skills further or learn a new lateral skill set.
The impact of technology is not going to slow down. In the past year, AI has impacted nearly every workforce sector. Those who embrace the changes and learn how to work within machine learning and artificial intelligence structures will be more valuable in the future than those who turn a blind eye. By taking a proactive view of your career and understanding the knowledge-based skills of your industry, you can set yourself up to be integral to the company’s future.
You’re an Overseer, not a Doer
When cost-cutting measures are implemented, finance will typically look at each company division and reduce expenses by a certain percentage. In looking at what roles could be eliminated, leadership will consider salaries and the impact on the work. Those who are not in a hands-on role are at risk. If you are not perceived as being a key contributor, there is a higher probability you’ll be expendable.
To keep the business moving, senior-level managers must balance strategic guidance and day-to-day involvement. Being able to speak to the challenges and provide solutions to correct the course will show your value in leading the organization through a difficult time.
Lack of Visibility
Sometimes, the safest route appears to be keeping your head down. While that type of employee response leads to a larger question of company culture, it can also backfire during difficult times. If you’re invisible to upper management, they likely won’t see your value, putting you on the chopping block.
Demonstrate your value and skills instead of staying out of sight and out of mind. Work on building a solid network of peers and managers who understand your capabilities and your impact. If consolidation happens, this will better protect you from being let go and show your versatility for other roles.
Lack of Performance
Low performers risk being let go at any time, and during layoffs, they are considered the low-hanging fruit. It’s important to remember that perception is reality, and even if you think you’re doing a great job, does your boss agree with you? Ask for feedback if you’re not sure. Actively listen and seek to understand where they are coming from. If they don’t see you how you see yourself, outline ways to improve and build a plan with your manager.
Offshoring and Automation
In some roles, offshoring threatens your job security, with companies finding lower labor costs for skilled labor. As noted above, automation will continue to impact jobs where efficiencies can be found compared to human labor. If your role is subject to offshoring or automation, seek out opportunities to learn new skill sets that demonstrate your contributions and agility.
While it’s not possible to 100% safeguard yourself from layoffs, the suggestions above can help you take control of your career, better demonstrate your value and impact on the business to leadership, and set you up for success with your current company or with another company should you still be part of a layoff.
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