As I work for a recruiting/staffing company, we get a lot of questions and concerns about layoffs. We also get a lot of business from them, as those people are now looking for jobs. So, while we do profit from the dreaded layoff, it’s actually not the best practice for the company that carries them out. Companies that wait out the economic downfall instead of laying off their employees or at least use it as a desperate measure, fair far better in the long run.
And here’s why. It takes about a year, give or take, for companies to see any savings from the layoffs they perform; it’s not the instant money making technique that people seem to think it is. Secondly, it takes a lot of time and money to look for, hire, and train new employees once the economy turns around. This cuts into the money they thought they were saving with the layoffs and almost renders it obsolete.
Lastly, productivity almost always goes down when a company executes a layoff. This also factors into the amount of money lost when layoffs are performed. So layoffs aren’t always the answer; but if you are the victim of one, remember that recruiting agencies can help find you work.