Although a large percentage of the people to be laid off are already on the streets, it's important for your career future to understand who usually gets laid off. Conventional wisdom says that low performers get the axe first. However, that's not necessarily true. Thus, the information I want to share will be especially useful for professionals in the first ten years of their career who take charge of their career and don't intend to be at the mercy of recessions, cut-backs, bankruptcies, buy-outs or mergers. Think of this information as street smarts.
This sharp downturn has forced companies to take different steps to maintain profitability, specifically the unbundling of the corporation. Most companies have three "bundles" of business: managing the infrastructure (IT, finance, logistics, etc.), product and commercialization (R&D, marketing, marketing research, etc .) and customer relations (sales, etc.). This will make more sense if you ask yourself this: what is your firm farming out? Bits and pieces of these bundles are being dissected to achieve greater efficiency and profitability. As a result, organizations are managing talent quite differently and will do so even more in the future. I assume that global competition will force these changes to be long-term.
Although the lay-off process in the past was merely to fall back on across-the-board cost savings (cut 10% out of every division's budget, etc.) or tenure, today that's a gross over-simplification of what's going on. Major and even smaller firms are thinking about lay-offs in different terms. You should be able to respond knowledgeably to these issues and questions. Your answers to these questions will help you make the decision to transfer, change career, change industry, search elsewhere, build up your bank account, or whatever.
- What jobs or positions that provided coverage for business demand or growth have evaporated and will not come back?
- What competencies no longer fit the company's core competency, future direction or strategy?
- To what extent is your position aligned with the organization's new requirements?
- What parts of the workforce most need to develop new skills--and is the organization desirous and willing to support that development?
- Are there parts of the workforce that could be redployed, perhaps to another organization, if retrained--and is the organization willing to support that?
- Based on long-term competency appraisals or a survey of supervisors, what employees should be booted?
Caveats:
As the business and its strategy changes, often people who were of high value no longer fit. In spite of their contribution and visibility, these people may be let go. On occasion, that will include senior executives.
Although some organizations assume they need topnotch talent in all roles, most organizations have "B" or "C" level players that fulfill a need of significance. Though they may never be promoted, they will be kept because, to quote a client, they are "useful Grinds--and they don't cost a lot."
No matter how thoughtful the analysis, there are occasions when neither the managers nor the firm have control over terminations. A new and successful competitor in the field or a business that is simply failing can result in mass exodus. However, smart professionals stay on top of the relative opportunities for the business as well as its longer-term status to reduce unpredictability as much as possible. Large, multi-national corporations in today's tumultuous markets can and should change frequently. Understanding what's going on organizationally can help make the pain of 21st economy more open to creative self-management for all professionals. Indeed, this is one backdrop for the 21st century "Take-Charge Career."