Myth Busted: Recession Layoffs Aren’t About Performance

Veritude, a leading staffing services provider, recently conducted a primary research study that found that because of the abundance of candidates in the job market, 63% of responding organizations are using the recession as an opportunity to replace poor performing employees. Veritude’s findings verify that most companies’ first and most central cost-cutting response to the economic crisis has been layoffs; fewer have lowered wages, reduced benefits and implemented furloughs.  Veritude conducted its primary research among HR and procurement professionals from companies with at least 2,000 employees, nationwide and across many industries.  Other key findings include:

• 42% said they are using the recession to develop workforce plans in anticipation of the economic recovery
• 45% intend to use temporary workers as part of their current and future workforces
• HR leaders are taking advantage of the favorable labor market to reshape their workforces and proactively position their companies for post-crisis success.  Three out of five reported there are more qualified candidates available so hiring has become easier; nearly half found that candidates are more open to negotiating terms of employment (42%) and are more likely to accepted offers (40%).

What does this say to me?  If you were laid off, perhaps you should spend less time cursing your company and the recession, and more time thinking about your performance in your last job.  Regardless of how good we are, we can always improve, and maybe you can do something differently next time around to facilitate a better outcome. 

 

 

Comments

[Will at Virtualjobcoach]

"Regardless of how good we are, we can always improve"

Umm, so regardless of how we perform, there will always be someone better/cheaper and it is OK for companies to upgrade without realizing that these are people with families?

This philosophy is disgusting. You are no longer a person but an FTE, or an accounting item that can be crossed-off at the whim of the company.

I wonder what you would think if your husband/SO said "you can always get better - So I have decided to upgrade you"? Would you say to yourself "I need to get better so I can change the outcome"?

This whole study simply shows how pathetic corporate America has become and how HR is now moving lock-step with Wall Street.

Oh yeah, you forgot to mention the first big layoff myth - that it's about performance, because your work will always be recognized in a meritocracy. Now if I can just find a planet where that was true....

[Alexandra Levit]

@Will: I think the point is that layoffs aren't always random, and even if one is, complaining about how the situation isn't fair is not the most productive way to cope. Layoffs suck, but as with all bad things that happen in life, we choose our response to them.

Appreciate you sharing your views!

[Elizabeth Johnston]

What creates job opportunities is the fact that there is a 30% turnover rate in executive positions. This does not mean executives are necessarily getting terminated, they could be getting transferred, promoted, leave for another opportunity, the company could be purchased and re-managed or the company could be expanding domestically or internationally or just be re-arranging the deck chairs. In any case the national average is a turnover rate of 30%, which means if you look at 100 companies and an average transition time of 120 days there is approximately 10 job openings at any given time. This is often referred to as the “hidden or non-published job market.”