The tech industry continues to cut jobs, but hiring still outpaces layoffs. Affected workers will be in demand, especially from other industries that need their skills.
However, workers who have been laid off and taken to new jobs may be less loyal and at increased risk of job retention. Even more frightening, research shows that layoffs have a negative impact on the health of those affected.
This week we have seen significant layoffs in tech. Amazon cut her 18,000 employees. This puts him 8,000 more than previously planned in November, and cuts most of its personnel organization and stores. Salesforce cut nearly 8,000 employees after admitting it was hiring too many.
Many of those who have lost their jobs may be in technology-related careers. For example, Amazon’s HR department called People Experience and Technology Solutions recently recruited a software development manager. Applied scientist with a master’s or doctoral degree in computer science, statistics, or other skill. and technical program manager.
The prospects for re-employment of these workers may be strong. The tech industry added 17,600 jobs last month, according to CompTIA analysis. Additionally, industry groups said employers across the economy added about 130,000 skilled workers in December.
A Moment of Hope, a Word of Warning
Salesforce’s layoffs announcement on Wednesday presented an opportunity for Salesforce and NetSuite consultancy Plative Inc. On the same day, Plative’s Chief Revenue Officer, Greg DelGenio, immediately posted open positions in sales, solution engineering, and consulting on LinkedIn.
The ecosystem has your back.
Greg DelgenioPlative, Chief Revenue Officer
“The ecosystem has your back,” he wrote on the career platform.
In an email, Delgenio said he received several replies and messages from people frustrated and shocked by the news of the layoffs. But there is also “optimism and hope”, he added, because companies like his “jump right in and offer an open role for those affected.”
Still, those affected by layoffs often carry the experience with them to their next job.
Employees who experience layoffs are 65% more likely to quit their jobs immediately after being laid off than the same employees who have not experienced layoffs. They’re also at higher risk of retaining jobs beyond their initial employment after a layoff, according to researchers at the University of Wisconsin-Madison’s Wisconsin Business School.
According to Charlie Trevor, one of the researchers and a professor of management and human resources at the Wisconsin School of Business, the data comes from a survey of about 2,500 workers across all industries tracked for over 30 years. It’s a thing.
“[The] The psychological ties that bind an individual to an organization are weakened by the layoff experience,” the researchers wrote in a 2016 study.
HR managers can take steps to mitigate retention risks for laid-off employees. This includes adopting a “trust-enhancing” HR policy. [and] Awareness of job safety,” said the researchers.
The opposite may also be true. There are no studies on job performance of workers hired after layoffs, but according to the paper’s authors, they may be more motivated to perform than workers with no history of layoffs.
Worker turnover has been above normal since the start of the COVID-19 pandemic and is expected to continue this year.
Jeffrey Pfeffer, professor of organizational behavior at the Stanford Graduate School of Business, studies the increased risk of death associated with layoffs. This risk is due to the financial impact of the experience and loss of health insurance. Increased stress and associated unhealthy behaviors such as smoking, drinking and overeating. and a link to depression.
“Employers can mitigate the impact by promoting more social support and maintaining employee health benefits,” Pfeffer said.
Patrick Thibodeau discusses HCM and ERP technologies for TechTarget Editorial. He has been working as an enterprise IT reporter for over 20 years.