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Do layoffs hurt companies more than help?

By admin, March 15, 2009 12:39 pm

Ok, so the focus is on the bottom line and reducing staff is the easy way to accomplish that.  Or is it?

‘A’ players in six figure jobs are always in demand.  When they see their resources cut back, their staff dwindling, they recognize their own success may be impaired.  Inevitably, they start paying attention to those frequent calls from recruiters.

One bloke I know who works for a highly visible company gets six or seven inquiries a month.  The urban myth there are no jobs does not visit those with an outstanding track record and apparent personal brand.  If these important  employees, and every company has a few,  no longer have faith their company will endure or will further their professional ambitions, these ‘A’ players often leave.

The results?  Companies who used a lay off to shore up their resources just lost a key player thereby weakening their prospects for success. Downward spiral, anyone?

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