HR Bulletin Volume 145

The Great Resignation takes a dark turn: Is it now the Great Layoff? Expert weighs in

As he discussed the flip side of the Great Resignation, Mr Haresh Awatramani, CEO of Beehive, emphasised that future HR leaders must possess a wider breadth of thinking, in addition to being tech-savvy and adaptable enough to manage a constantly evolving and unsettled workforce.

If you parted ways with your employer within the past couple of years, then you were among the participants in what was dubbed the Great Resignation; a term coined in 2021 to characterise the unprecedented amount of individuals who vacated their positions in certain advanced economies following the onset of the COVID-19 pandemic. And this grand upheaval in the labour market persisted, with millions more people leaving their jobs in 2022. Now, we are witnessing the opposite end of the spectrum, with layoffs becoming prevalent. With the considerable number of downsizings happening in various industries, it wouldn't be far-fetched to label this occurrence as The Great Layoffs! In the past, numerous companies such as Accenture, Amazon, Nordstrom, Indeed, LinkedIn, Meta, IBM, Morgan Stanley, Twitter and others reduced their workforces. The magnitude of job cuts has become so extensive

This has resulted in a plethora of questions arising from individuals, including inquiries about the reasons behind it, the consequences, potential solutions, and how it affects various generations To gain a better understanding, People Matters reached out to Mr Haresh Awatramani, the CEO of Beehive, a company that provides HR software solutions.

Excerpts from an interview:

Q. What factors do you believe are contributing to the shift from employees voluntarily leaving their jobs (The Great Resignation) to employers initiating layoffs (The Great Layoff)?

The three key reasons for the recent surge in layoffs include: A possible recession, the need to manage costs, and growing "too quickly" during a bull market. Rising inflation and interest rates have increased business costs, resulting in lower corporate profits and unhappy investors. In recent months, these factors have compelled many prominent industry players to implement a hiring freeze, lay off employees, and reduce spending in recent months

Q Do you anticipate any long-term impacts on businesses and the workforce due to the shift from The Great Resignation to The Great Layoff? If so, what are they?

The industry layoffs have jolted the labour market The main impact for businesses is the need to justify their actions, but corporate reasoning is now being scrutinised in both traditional and social media Anyone, thanks to social media, can now challenge workforce reduction decisions. Overall, layoffs destroy trust and have a negative impact on businesses in real but difficult-to-measure ways.

In the case of employees, layoffs can have a negative impact on an individual's sense of self-worth in addition to the emotional impact. Employees who are laid off frequently feel like they have failed, which can decrease selfesteem and confidence. Employees may find it challenging to find new employment opportunities due to this, as they may believe they are unimportant to other companies.

Q. What specific challenges do you think Gen-Z employees may face in the event of a layoff, and how can employers address these challenges to support their young workforce?

The main challenges that Gen-Z employees face in the event of a layoff are a lack of savings, a lack of job experience, and a lack of job security Many Generation Z workers are just starting out in their careers and haven't had time to save Many people may have little or no savings in case of a financial emergency, such as job loss

Because Generation Z is so young, they have yet to have the opportunity to gain the experience that their elders have.

If they are laid off, they are concerned that they will not have the necessary experience to re-enter the workforce. Finally, even if Gen Z workers are employed, they may believe their job is in jeopardy due to the pandemic's impact on their industry. They may be concerned that their employer will lay off employees or that their position will become obsolete as the company adapts to the changing business environment.

Because of these challenges and ongoing economic uncertainty, Generation Z remains concerned about the possibility of layoffs. In many ways, Generation Z is at a disadvantage compared to previous generations. Employers can help the vulnerable generation by understanding that GenZ employees feel disconnected and have reached a breaking point Putting mental health first, making onboarding a community-building exercise, supporting young talent with L&D, and finally trading screen time for connection time are some ideas for addressing the challenges that the young workforce faces Businesses must prioritise human connections

Q How can HR professionals help their organisation retain top talent during the period of layoffs or restructuring, and what strategies can they use to attract new talent in a competitive job market?

Talent retention is critical in any business economy. Some key ideas for engaging team members and retaining your most valuable asset, talent, include: -

Provide clear career growth and advancement opportunities.

Make sure that employee education is not an afterthought. Instead, make workforce career development a top priority across departments…

Creating a fulfilling employee experience is essential for optimising performance and promoting efficient business growth. Being loyal to your employer isn't all sunshine and rainbows. Some managers exploit dedicated workers by assigning them extra work without any extra pay.

Picture this: John is a dedicated employee He comes in early, stays late, and always goes above and beyond His bosses love him, and he's well-liked by his colleagues John is loyal, and that's a great thing, right? Well, according to a new study, company loyalty might have its downside Researchers found that managers tend to eye their most loyal workers over less committed ones when it comes to handing down unpaid or additional assignments. Matthew Stanley, Ph.D., lead researcher on the study and a postdoctoral researcher at Duke University's Fuqua School of Business, explained: “Companies want loyal workers, and there is a ton of research showing that loyal workers provide all sorts of positive benefits to companies. But it seems like managers are apt to target them for exploitative practices.”

Stanley and his colleagues conducted a series of experiments, enlisting some 1,400 managers online to examine a fictional employee named John. The managers all learned that John's company had budget constraints and needed to decide how willing they would be to give John extra hours and responsibilities but without any extra remuneration

Managers were often more willing to assign "loyal John" the unpaid tasks

When a separate group of study subjects assessed recommendations about John, the letters commending John for being "loyal" appeared more ideal to managers who wanted to enlist him for unpaid tasks, than versions of John who was lauded for honesty or fairness

Read more at: https://www.peoplematters.in/article/employeeengagement/dark-side-of-loyalty-how-companies-exploit-their-most-dedicatedworkers-37773

Dark side of loyalty: How companies exploit their most dedicated workers

How to build employee careers through an internal talent marketplace

Establishing an thriving internal talent ‘marketplace’ is among the most effective solutions for leaders to tackle the talent challenge and enhance employee engagement and performance

Today’s business environment is marked by a growing dichotomy On the one hand, we have business leaders and organisations grappling with challenges related to talent shortage and a mounting skills gap, whereas, on the other, we have an increasing number of employees looking for more opportunities to grow.

It is worth noting that talent today is not only looking for growth in payscales but also in terms of building futureproof skills that help further their career. In a study done by PeopleAsset, 76 per cent of respondents (employees) rated learning and development as the most important factor impacting their engagement, with career growth opportunities coming in a close second at 75 per cent. This highlights the relevance and criticality of developing robust, thoughtful, and impactful skill development, learning, and training practices within an organisation. If leaders want to overcome the talent challenge while also improving their employee engagement and performance, setting up an internal talent ‘marketplace’ is one of the most effective solutions

The concept of an Internal Talent Marketplace can be defined as a platform or practice that gives an organisation’s employees access to internal opportunities; helps them upskill and build a career that is best aligned with their personal aspirations and strengths Some of these opportunities can include projects, stretch assignments, mentoring, and even full-time roles. By creating an internal talent marketplace, organisations can fill their short and long-term talent/skill requirements without hiring from outside, and employees can build their skills and fortify their professional growth journey without having to look for new roles outside their organisation…

Read more at: https://www.peoplematters.in/article/talent-management/howto-build-employee-careers-through-an-internal-talent-marketplace-37827