Announcement | Pexels by Markus Winkler
Announcement | Pexels by Markus Winkler
Multinational corporations like Google, Amazon and Zoom have begun a series of mass job cuts and hiring freezes in response to the economic cool off. These cuts have cost U.S. workers thousands of jobs.
Management expert Dr. Luis Perez-Batres, Missouri State University management department head, shares what this means for managers, workers and new graduates.
Trouble in tech
Recent mass layoffs spark worries for those who went through previous recessions in the U.S.
Mass layoffs are newsworthy and usually the result of rapid industry growth that has since cooled off. Tech companies are making major changes because they are most affected by the economic downturn.
The tech industry boomed as a result of COVID-19 because consumers looked to new technologies to solve their needs. Then, the pandemic weakened, workers returned to the office, and consumer needs changed again.
“8,000+ mass layoff actions affected over 1.5 million workers during the 2008 great recession,” Perez said. “While the recent layoff trends are nowhere near previous rates, they are still painful and disruptive for thousands of families.”
“Rising inflation and interest rates exacerbate the fears of a significant economic deceleration for 2023.”
Managing expectations
Leaders weighing their options may find that layoffs could cost them in the long run.
“Survival is key when dealing with a downturn, but they need to think about who and what will help them thrive once conditions improve,” Perez said.
“GOOD LEADERS WORRY ABOUT FIRM SURVIVAL, AND BETTER ONES ALSO WORRY ABOUT MANAGING THEIR EMPLOYEES’ CONCERNS AND POSITIVE ENGAGEMENT TO KEEP EMPLOYEES WHOSE TALENTS ALIGN WITH THE COMPANY’S MISSION.”
Perez suggested managers promote procedural fairness.
“A fair, respectful and transparent decision-making process will decrease employees’ anxiety and enhance organizational commitment,” Perez assured. “Managers should also be proactive and try to cultivate a culture of innovation and adaptability.
“The more adaptable your employees become the better prepared they will be to face radical changes.”
Original source can be found here.
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