Handled Well, Layoffs Contribute to Effective Talent Management

Layoffs are a fact of organizational life.  Whether driven by recession, restructuring or by the need to respond to marketplace dynamics, layoffs are inevitable.  When they’re handled well, are based on sound business imperatives with an approach that manifests respect for those displaced and for those remaining in the workforce, layoffs can actually contribute to effective talent management, foster sustainable workforces and make it possible for businesses to prosper and evolve.   When handled poorly, layoffs damage the corporate DNA and make those businesses less competitive.

A “well handled layoff” is characterized by an objective business requirement for a staffing reduction in a particular unit of a company or enterprise-wide.  Thorough planning is crucial and should include an assessment of the essential skills needed for operational effectiveness during and post layoff.   The generational composition of the workforce, before and after a downsizing, must be considered.  If a disproportionate number of boomers are to be laid off, not only can the business can be placed at risk for age discrimination complaints, it can lose valuable intellectual capital and the ability to transfer knowledge to Gen X and Gen Y members of the workforce.  Human capital is the most valuable asset a business has and the human resource professional has a fiduciary responsibility to optimize the management of this asset and this includes the retention of key boomer talent for post layoff business success.