Positives and Negatives of Layoffs for Companies

1. Positives and Negatives of Layoffs for Companies Layoffs can be hard on employees, especially for the company to downsize its operations and increase the workload on others. But if you take a look from both directions, then you realize that there is some advantage or a disadvantage over company layoffs because of several reasons. Thus, all the negatives and positives of layoffs that could directly or indirectly affect the company are given below. Take a look. Pros • Retain the best. Layoffs could mean that the company is letting go of the weaker employees and retaining the best. It's these employees that could work harder and take the company to the top. Company layoffs can be hard, but then to grow, these retained employees can do wonders in getting the desired outcomes. • Experienced employees. After all the layoffs are carried out, you are left with experienced and qualified individuals that are capable of delivering results. Experience talks and within employees, this stands out to be the prime factor that saves you from being kicked out of the company. Sapient layoffs were the worst as employees had no idea about them being laid off. Only experienced employees were retained. • Due to fear, other employees improve their work strategy. A layoff can impact every part of the company. Even the employees that are retained. Such that to help glue their positions in the company, these employees work even harder. Thus, a win-win situation for the company and employee. • Cost-effective. If you are laying off your employees, then you are at the same time-saving money as well. Lesser the employees that have to be paid, more significant is the profit. And in turn, the company grows exponentially. Cons • Legal issues.

2. If you are laying off employees, then you will have to pay them their salary's before they are being let go off. If not done, then they can sue the company and cause a huge problem. A similar situation arose with Sapient layoffs. • Increasing the burden rate on retained employees. Lesser the employees, more significant is the workload. The retained employees have to pull their sock up and work harder despite their stagnant paygrade. Hence, it increases stress levels and makes it near impossible to have a proper work-life. • Morale does for a toss. Layoffs can be a tough challenge to coupe up with not only for the ones who have lost the job but also for the ones who still have it. It becomes a problematic situation for a positive atmosphere to be retained, and the overall morale of the company goes down. • Company's downfall. The company losses its limelight in the world. People start to lose interest in the company and seek other people offering the same services. Thus, earning a bad reputation and causing more significant problems in the downfall of the company. • Employees find employment elsewhere. Both the laid-off employees and the retained employees start to look for jobs elsewhere because of the negative atmosphere, poor conduct of management, and uncertainty of the future of the company. Thus, it a personal opinion to say that companies could have some or the other positivity or negativity from layoffs. Based on the situation, it might be one of the other. Source Url: http://publicissapient-reviews.mystrikingly.com/blog/positives-and-negatives-of-layoffs-for- companies