Please don't be alarmed at the title of the post. It is not intended to scare you away, but merely to capture your attention.
Yes, these are tough economic times, and things look uncertain, if not downright bleak for the future. Job security is dipping, and many folks don't really know if their jobs will survive the recession. Various companies across the world have been forced to 'right-size' which is nothing but a euphemism for downsizing or laying off employees.
Understandably, people who've been laid off tend to harbour bitterness for their former employers. However, do companies really like to chop off their human capital? I was rather incensed to read a set of articles on a popular website. In this 'shocking chronicle of work experiences' - as the site calls it, laid-off workers have expressed their opinions, and largely their angst against their respective employers.
I agree that it is a shocking chronicle - not because it is sad to see this happen but because it seems people were working in tandem with nasty bosses, 'inhuman' working conditions, low salaries
et al, without complaining earlier. But, the moment they lost their jobs, their employers became cold and heartless creeps.
As someone who has worked in the training industry for long enough, and is now pursuing an MBA in HR, I can assure you that laying off employees is not as plain as number-juggling for companies. The decision to let go of productive workers is never easy, and almost never illogical. A lot of thought is given to each such move.
A normal
BPO company spends nearly Rs. 200,000 for each employee (including salary, travel, training costs, medical insurance, and other benefits) for two months of training. And then, takes another 6 months to break-even on that employee. So, for the first 8 months, the company actually spends money on you, and then begins to earn. And if after that, it fires you, it has to spend the same amount of time/money in getting another person to do your job.
Also,
unfortunately enough, layoffs are not always performance-based. A person does not have to be a poor employee to lose his/her job. Sometimes, companies decide to stop focusing on certain strategic initiatives or on some dimensions of work, because they no longer add value. In a boom scenario, the displaced employees are absorbed by other departments. In a recession, they may be asked to go.
As an example, let's say that you have a housemaid who takes care of cleaning you house and another one who takes care of washing your clothes. Now, you feel that you can probably save the recurring cost of the one who washes clothes and the time spent in washing/drying, by investing in an automatic washing machine. So, you let go of her services despite the fact that she was brilliant at her job . However, the one who cleans the house is still employed, even though she absents herself regularly, and does not quite have great performance.
That's a rather crude example, but then that's pretty much how layoffs happen. However, even though it could be tough, my advice to people who have lost their jobs is to not lose confidence, but to try and find something that fits your skill sets.
And to websites that post grim and morose tales like
this, my suggestion is to post articles on alternate employment options, or how to cope with such a situation. I really fail to understand how reading someone's sordid tale will help, if I've been laid off.
Perhaps, an extra dimension that employers could add - arrange for counselling sessions for laid-off employees. Yes, it is a cost, but maybe you could look at it as something like your corporate responsibility to make sure that you are releasing a healthy individual - who will not consider alcohol/drugs/suicide/crime as alternatives at all.
Readers, these are just my views, and I'd really love to hear your thoughts on this too.