In the span of weeks, the United States’ Silicon Valley which has been a reliable source of high-paying jobs and booming stocks is now witnessing a tough time with major big tech companies including Meta, Twitter, Snap, and Microsoft announcing mass layoffs, which have tens of thousands of people unemployed.
Layoffs are happening as the world ponders whether a global recession is coming. Whatever label people end up putting on this era, companies are struggling with consecutive lackluster quarters, inflation, price hikes, and uncertainty. Varying interest rates, a plummeting stock market, and a downturn in consumer confidence are only making matters worse.
Here are some alternatives to layoffs that may help HR avoid all the drama:
Thanks to the pandemic, most, if not all, companies with knowledge workers are now set up for remote work.
Many companies that are laying off people are still hiring at the same time. It is a bad look. Employers should have a hiring freeze to save money and stay on budget.
Furloughs can be a short-term way to avoid at least some layoffs. A furlough is a mandatory but temporary leave of absence. A furloughed employee works a reduced schedule or takes unpaid leave.
Pay cuts can help prevent a business from bleeding jobs. However, to be noted that this strategy can be costly for employees, particularly those living paycheck to paycheck amid high inflation.
Cuts in benefits or perks
Aside from pay cuts, an employer might temporarily reduce benefits or perks to “buy the company some time” to turn around its finances.