LAYOFF-RIGHT WAY FOR COST CUTTING

Poor recruitment policy and organization strategy results in layoff of employees. This is rampant across the globe. It is easy to hire when you need and fire when you do not have business. Just imagine you have money today and since the Stock Market is going through a Bull-run you invest in a stock. But when Stock market crashes, you are allowed to withdraw your money without making any loss. Is this realistic ??

When the demand goes up for a Business, even then the recruitment should be only on need basis and not in herds..!! One should be careful while hiring and should have a plan for the resource (Vacant post not the individual going to fill the post). All weather situation should be considered and options to re-deploy the resource should be also be considered. Seems most of the companies specially in IT Industry are more or less carry out Body-Shopping and hence, they do not stand a chance to re-deploy the resource in case they loose out on Project. 

In stead of been opportunistic, the need is to be work smarter, ensure higher productivity (not by making one employee cover for five) and hire when there is real need.  

Generally when companies lay off or downsize their workforce, the ones to go first are the ones who are at the lower rung of the organisational heirarchy.    What this actually translates into is that the people who are at the higher rung start performing the dutires/actions which were being done earlier by a lower paid employee.      What should be done is to curb on those expenses which the company has, over a period of time, become accustomed to, and prune their heads of expenditure.    The benefit would be that the company would be paying its higher rung employees at par with the market, and instilling a feeling of gratitude among the lower rung employees towards the organisation, and also towards their seniors who have downsized their pay packet.

In my view if a company wants to cut costs by laying off employees then that is definitely not an ethical thing to do.Because those employees are the people who have given their best to support the cause of the organisation and you suddenly fire them without any genuine reason which is not right from any perspective.

So instead cutting costs through laying off employees companies should reduce their inefficiencies which will help them reduce their costs.

what do you say?

I understand your point sanjay that sometimes layoffs are the only option left for cost cutting but if you are firing people just to decrease the csts then may be you are losing out your best employees which is definitely not good for your company.