Layoffs are common among today’s organizations. To survive the accompanying period of uncertainties, affected employees ought to develop the right attitude to tackle the emerging challenges.
Layoffs have become an integral part of corporate existence; whether in the developing world or advanced economies; and, whether in small businesses or multinational corporations. For instance, corporate layoffs within the US labour force were in excess of 8 million during the 2007-2009 economic recessions according to the US Department of Labour. Also, in the aftermath of the 2009 banking reform in Nigeria, the banking industry laid off more than a quarter of its entire workforce.
In the last decade, the corporate world has recorded massive layoffs across industries and countries in what has now become a common tradition among renowned corporate entities. Among the prominent layoffs in the last decade include, Wells-Fargo (2018), 26,500; Hewlett-Packard Enterprise (2015), 30,000; Bank of America (2011), 30,000; General Motors (2009), 47,000; Citigroup (2008), 50,000; and Ford Motors (2007), 35,000.
The COVID-19 pandemic has created more opportunities for corporate layoffs than any other factor in recent history. In the aftermath of COVID-19, more businesses would have closed down, and thus a lot more people would have lost their jobs than we have witnessed in the last three decades.
The real reasons why corporate organizations layoff
The regular reasons given by corporate organizations for layoffs include consolidation, reorganization, restructuring, mergers and acquisitions, strategic repositioning and divestitures. But beyond these cover-ups, the real reason appears to be that managers are constantly under pressure to perform. Faced with dwindling revenue and unending demands for profit by shareholders and executive management, managers resort to layoffs as a way to survive.
Among corporate executives, the argument in support of layoffs is that when faced with economic downturns marked by periods of decreasing sales and revenue, cost reduction remains the shortest way to increase profits. Proponents of this argument hold that since staff costs are usually fixed and predictable, laying off a portion of the labour force will translate to an increase in earnings. As a result, managers easily resort to layoffs as the first rather than the last line of defence. This is despite knowing how layoffs impact on productivity and service quality.
How employees react to layoffs
Layoffs are sometimes inevitable. Therefore, employees must channel their reactions towards using the experience to further the course of their careers. Unfortunately, this is not always the case because many employees react to layoffs in near similar manner. First, they express deep seated anxiety, fear, anger and the desire to revenge. Next, when the reality appears to have dawned on them, they begin the search for new career direction.
Layoff anxiety is fuelled by an inner state of mind constantly in turmoil. In this state, affected employees are usually confused and stand the risk of a nervous breakdown. They often complain about everything and everyone except themselves. Unemployment breeds uncertainties both in the victims career and wellbeing. The onset of uncertainty among victims of corporate layoffs breeds fear, anger and the urge to revenge against their former organizations. Revenge often comes in the form of protests, sabotage of company’s interests, rumour mongering and de-marketing of organization. Regrettably, none of the above reactions enhances the career prospects of the affected employees. Instead, they inhibit the search for new career direction.
The dilemma faced by layoff victims
Layoff victims have three major challenges. First is the need to manage the follow up emotional and psychological trauma associated with losing one’s job. Second is the inherent problem of being able to continue to meet the material needs of the individual or his/her dependants. The third is the need to reinvent one’s career by finding or creating new opportunities for career progression. These should guide the employees next line of action.
1. Managing the emotional and psychological state
The emotional and psychological burden associated with layoffs is often too heavy for affected employees to bear. Being laid off rekindles thoughts of unfulfilled dreams and of unmet personal and family responsibilities. It also creates a feeling of hopelessness and the latent fear of failure. The follow up period of unemployment requires stability in mind and spirit to be able to work out a sustainable next line of action.
To survive this period, it is important to develop a sense of calmness. Affected employees must constantly reassure themselves that this is only but a passing phase in their careers. This period also calls for thorough self-examination. Layoff victims must use the period of unemployment to review their past employment activities. Sometimes an employee’s workplace activities could lead to sudden and unexpected layoff. This knowledge will help a layoff victim to avoid a repeat of similar experience in any new endeavour.
Harbouring a sense of regret, blame game, abuse and revenge only exacerbate the situation and reduce the opportunity for learning. These sorts of reactions may also create an emotional state which may affect the employee’s health and make the drive for new direction in their careers impossible. To conquer this state, you must stop wandering in self-pity; keep yourself busy, even if it is without reward. Keeping yourself busy helps you to stay out of trouble.
2. Meeting personal and dependants’ material needs
Being able to meet personal and family needs is very critical at this stage yet often more demanding than before. This is more difficult if you do not already have some savings. The situation calls for a review of your personal finances, a re-ordering of financial priorities, and serious moderation in lifestyle. The changes you make and the decisions you take will immediately affect your dependants. Therefore, it is very important to explain your situation to them and seek their understanding and co-operation. Unless you moderate your habits and financial priorities, they are not likely to understand why you expect them to do so.
3. Moving your career forward
This is perhaps the most important aspect of your survival strategy. Unless you are able to find or create new opportunities for moving your career forward, your efforts in other areas will be fruitless. Put the lessons learnt in step one into practice. If you desire new direction in your career, define this direction and articulate measures to achieve it. This may also be the right time to acquire new skills or additional qualifications to enhance your job search opportunities.
Your skills and academic qualifications are always very important. However, you need to harness every opportunity to showcase your skills and qualifications to the right audience. One highly effective tool for doing this is your social and professional networks. Reach out to friends, school mates, former work colleagues, customers, and all those who have followed your career progression and can confirm your skills and competence. Let them know you are available and be clear about what you are looking for. To enable them make informed judgment about your skills and capabilities provide them with up-to-date information about yourself, your skills and experiences, and your achievements.
Whatever you do, never close the door to your former organizations, your bosses or former work colleagues. There is always a chance that you may meet them again in your job search. Often they hold the key to opening new job opportunities where you least expect. You may also need them for that all important referral. If this happens, they will never forget what type of employee you used to be.
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