“Don’t Make A Permanent Solution For A Temporary Problem”
1. The past year has all been about layoffs. From giants like Microsoft and Google to Indian companies, everybody is laying off in the name of restructuring. In such adverse circumstances, do you think layoffs are the only survival mode?
My view is a bit different as I have an outside and inside view. I can look at the full global view. We have been hearing a lot about layoffs in the media, especially in India, and it stands true as well, but we should also rewind back a few years and think about all the hiring done.
The economy is really about waves - it’s about ebbs and flows. One thing we’ve learned over generations is that while layoffs may happen, but there will always be hiring that follows. Of course, companies are not laying off purely to cut costs on their operating expenses; many of the leaders that I speak to are focusing on being future-ready, in other words, making sure their organisations are future-ready.
2. We hear a lot about workforce planning now. What is the right size, how do you get to right sized organisation to be ready for tomorrow or the day after tomorrow. Can you throw some light on that?
I can tell you, as a CEO I’m always thinking about do I have the right size of workforce and the right variety and spread? We talk about core, permanent full-time employees versus contractual workers versus temp versus gig and so on. A lot of companies actually gained some wisdom during the pandemic and as we come out of that, I think you are going to see some right sizing. At the same time, we know that the first half of 2023 looks to be one of caution globally when it comes to the economy, but we also know that there is some positive news coming. There is an old phrase that many leaders follow, and I believe in this: ‘Don’t make a permanent decision for a temporary problem’.
I feel that everything we are seeing now is a temporary response to the current situation. During pre-Covid days, companies were hiring like mad and now we are exercising wisdom, and with lessons learned, right sizing by absolutely believing it will come back to where we were.
3. So, why in your view did layoffs happen right after the Great Resignation and the war for talent?
It’s my firm view that the Great Resignation has been a bit of a hype. Randstad helps thousands of companies across globe and we didn’t see a massive spike with many of the companies we support. What people have decided to do is put value on lifestyle.
Not working to live or living to work, but finding that happy medium in between of loving what you do, not just what you do but how you work. So, people are choosing jobs and navigating their career now with this added extra criteria, which is choosing the way of working. And companies are seeing that. Their employees have a new value system that they bring to work. They are highly motivated by a couple of things. One is purpose, the other one is the way of working.
They want to have the freedom to decide how it works and that’s new for companies to navigate.
4. We have seen an astronomical rise in young organisations that engaged large work forces but have not been able to create a sustainable strategy for HR. What’s your take on the same, as employees too are feeling apprehensive in being hired by any new organisation after being fired overnight?
No, its completely in sync with an old phrase, ‘once bitten, twice shy.’ Companies are actually doing a major knee-jerk reaction to right sizing or downsizing, and if we fast forward when the economy bounces back then I think this is some wisdom being gained. Now let’s be careful not to brush the entire economy and all companies with one brush. In fact, there are some companies that are not restricting or downsizing. Credit to those companies that are thinking two and three steps ahead. I would call that preparing for the day after tomorrow.
From the job seekers’ standpoint, whether you are fresher or someone who has made career, it is also very important for you to plan. I think it’s always important to have options. Options are born when you bring a sense of added value to wherever you go. And this is why it is important for everyone, especially when the economy is turbulent, to be learning constantly, building new muscles and taking on new skills. And this is why, for example, we see the whole world of education and edtech and so on really growing around the world. And that is solely because people realise the best investment you can make in anything is in yourself. They can actually upskill their existing talent.
5. Upskilling is known to be the key to future hiring in times to come. While it is also an added advantage for the employee itself because we will be getting an extra skill into it, do you think it is a means to retain employees or you feel that it’s temporary and the trend will wash away in time?
I firmly believe that certain companies who get this module right, they will certainly opt for it again and again. Today, your best employee is the one you already have. It is kind of similar to sales. If you talk to great salespeople, they tell you the best customer is the one you already have, not the new one you search. So, companies have put people first. Also, focus on creating a barometer. People can invest in learning. While some companies immediately fired people and cut their operating expenses including Learning and Development budgets, other companies said no, and counter intuitively went ahead with investing in people. And in my view those companies are ready to outperform.
