Getting Axed: Myths and Misconceptions About Layoffs
A Reduction-In-Force (RIF) or layoff is usually seen as the easiest, fastest way to cut costs as companies trade immediate, short-term gains for long-term growth and performance.
But the downside is that the negative effects on the company can be wide-spread and lasting. Yet, it seems, layoffs are the first things management considers, especially in a down economy. More and more companies have followed the crowd in believing this policy just makes good business sense. But, as Kerri Barber points out in Common Myths and Misconceptions About Layoffs, year after year, hard data and analysis disprove that theory.
While Kerri wrote the article quite some time ago, it’s a useful piece of information even today as the economy is hanging out in a trough of sorts. She not only methodically goes about debunking these myths, but offers some good employer alternatives to layoffs that deserve serious consideration.
In the article, Barber looks at three of the most common myths companies hold about layoffs:
- Layoffs are necessary to cut costs.
- Reducing costs through restructuring and downsizing results in higher stock prices.
- Layoffs help streamline the workforce, weeding out the poor performers and creating a more efficient employee base.
After you’ve read the article you’re likely to agree with her conclusion: “Successful leadership will be defined by those decisions made for the benefit of the company to preserve short- and long-term goals, not jeopardize them for the benefit of a few individuals at the top.”
What are your thoughts on layoffs or RIFs and how do you think employers can work to avoid them? We’d love to hear from you. Please leave a comment.