By Brenda L. Peterson, The Layoff Lady Change Is The Only ConstantBusinesses are always changing. They constantly update their strategy to stay viable long-term. Changing staffing levels is one way they evolve to meet those needs. There are a few factors to be aware of that could indicate that changes to your company, and even your role in particular, might be coming. It's also important to note that the presence of one or more of these changes does not mean that all is lost. Use these indicators as one piece of data as you think about the possible future of your job with your current employer. On the positive side, changes may be good--like an opportunity for a promotion or taking on different responsibilities. Alternatively, it could mean that some jobs may be eliminated or changed significantly, which could result in positions being eliminated, layoffs, or even a company-wide reduction in force (RIF). Here are a few signs to look for that may indicate that bigger changes might be coming to your organization. Economic DownturnFrom the dot.com bubble to the 9/11 attacks to the subprime mortgage crisis to pandemic fallout and beyond, economic conditions impact the viability of individual businesses. During the pandemic, we saw some businesses boom (like video conferencing) while others struggled (like hospitality). Consequently, for organizations that were floundering, job eliminations followed. In 2022, mortgage rates rose, causing mortgage companies to streamline their operations. Now, as businesses shift gears post-pandemic, additional workforce changes may be on the horizon. This strategy may help companies realign their staffing levels to meet business needs in a cost-effective way to respond to new economic realities. Financial TroublesNot all companies are successful--even in a strong economy. Companies might miss their sales targets for a quarter (or longer) or start to lose market share to a competitor. It could be a result of a news story breaking that causes consumers to go elsewhere. Whatever the cause of financial troubles, companies need to adapt to survive. To adjust, they may start with small cost-cutting measures, like having fewer snacks in the breakroom or downsizing employee events. On a larger level, there may be hiring freezes, open positions going on indefinite hold, no raises, or skipping performance bonuses. There could even be temporary pay cuts or elimination of some benefits (like employer contributions to a retirement plan). Since salaries are one of the biggest line items companies have, eliminating staff is one way to address financial troubles that show a significant, more immediate impact on the bottom line. New LeadershipWhether a CEO or a frontline manager, leadership changes can impact an employee’s future. When a president is replaced, a VP of a critical department moves on, or a manager leaves due to personal reasons, new people fill those positions. When key staffing changes happen, it is unwise to assume your role and responsibilities are not up for discussion. New leaders typically review the current state, assess staffing levels, revisit company goals, and make changes. This may include them bringing in their own people, restructuring departments, halting unsuccessful projects, or starting new initiatives. In some cases, they may bring in one or more consultants to make recommendations—including the jobs that will continue, their scope, and who will do them. In addition, sometimes if sweeping changes are on the horizon, company leaders start to leave for new opportunities. At one point, I worked for a very large organization with approximately seven layers of management above my individual contributor position. Before I was laid off, six of the seven people working in those positions left. Sometimes leaders leaving is not the cause of the changes, but an indicator that organization-wide changes are taking shape. Ownership ChangeCompanies are always adapting to stay viable. Sometimes, that means a change in company ownership. Possibilities include mergers, being acquired by another organization, acquiring another business, spinning off from a larger company into a separate entity, or changing how the organization is funded (like moving from venture capital to private equity). When ownership changes, so does the organization. In the event of a merger, duplicate teams will combine, and some positions may be consolidated or eliminated. A company culture with very structured documented processes may be replaced by a move-fast-and-break-things startup mindset. New company values or objectives may mean that a department once considered indispensable might now be seen as costly overhead. When a new company takes a closer look at finances, they may be ready to take more immediate action on teams that seem like they are a cash drain. Regardless of the circumstances, one thing is sure. The organizations in question will determine changes that need to be made and move forward to strengthen the company—which may or may not include a job for you. RestructuringOccasionally, companies revisit their goals and decide to switch directions. For example, a call center might start expecting all agents to be able to answer all call types, then shift to having specialized teams, and then decide later to outsource or eliminate a service altogether. The work that may have been completed by two teams may now be the responsibility of one brand-new department. This may also bring in new leaders with new ideas on how to organize work optimally. Shifts take place to minimize costs or capitalize on a potentially lucrative market. Unfortunately, this also means that the job you have that was once considered essential may be deemed out of scope. Reduced ResponsibilitiesOn an individual level, changes to your job (especially if it becomes less challenging) may be a hint about the future of your role. If, at one point, you led projects, and now you are left out of crucial meetings, take notice. See if this is an isolated incident or a pattern. This may also be a downstream effect from changes elsewhere in the organization. For example, a new manager may observe you doing your (now less challenging) job and see a misalignment between the value you bring and the salary you receive. Whether this is due to a new boss who isn’t your biggest fan or one who has a former colleague they want to bring in to replace you, it’s important to pay attention. Changes in responsibilities may put you in jeopardy as the organization evolves. Company CultureDepending on company culture, the amount of voluntary and involuntary turnover varies. While some companies have employees who have been there well over a decade, others may have the bulk of their staff there for less than a year. A larger, more established company has a better chance of longevity, while a tech startup may have more people regularly coming and going. Some companies may quickly decide if an employee is an organizational fit and take action to move them out of the company more quickly. Others will have a structured (and often lengthy) procedure for attempting to correct performance before terminating. An organization’s mission, values, and day-to-day practices will influence your onboarding to a company and when and how quickly you might be offboarded if it's not working out. A Round of LayoffsThe most blatant indicator that you may lose your job is that the company has already done some layoffs. I used to think that if I was still employed after a layoff, my role was safe. Unfortunately, that is not always the case. At one of my jobs, the organization did several rounds of "quiet layoffs." The company never formally acknowledged job eliminations. Instead, I would notice that someone would be listed as "offline" in our office chat application, then later see a LinkedIn post from them saying they were looking for new opportunities. In that role, I had this experience of someone being gone about once a month for a few months. When the company released a new organizational chart, and I was on it, I thought I was safe--especially since at least a couple of people had been eliminated a couple of weeks prior. Shortly after, my position ended as well. All of The AboveSometimes, a layoff is inevitably caused by a series of events. For example, it may start as an economic downturn, followed by the company’s financial issues, then a leadership change, a resulting reorganization, and end with the company being sold. There could be layoffs at any point in this process, and it could also happen more than once. Learn More
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |
Author7-time layoff survivor Brenda L. Peterson, The Layoff Lady, waxes poetic on layoffs, job transitions, & career resilience. Buy The Book!Were you recently laid off? Need a roadmap for what's next? Check out my book, Seven Lessons From Seven Layoffs: A Guide!
Categories
All
Archives
November 2024
|