Over 71% Of Indians Worried About Potential Layoffs Due To market Inflation: Genius Survey
The world economy has been facing a challenging time due to the pandemic, continuous lockdowns, and geopolitical conflicts. As a result, many organizations are struggling to balance their workforce with the available resources and are facing financial challenges.
In this scenario, Genius Consultants Ltd., one of the leading Integrated HR Solutions Provider in India, conducted a nationwide survey on Layoffs to Gauge the Present Work & Mental Scenario of Organizations and Employees. The survey covered over 1537 participants, and the findings revealed that an overwhelming 71% of India Inc is worried about potential layoffs due to market inflation. The survey also reports that 36% of India Inc believes over hiring is the reason for layoffs, while 30% believe cost-cutting is the reason behind them and 23% blame the mass economic downfall as being the reason of mass layoffs. This shows that organizations are struggling to balance their workforce with the available resources and are facing financial challenges or are looking to improve their profitability by reducing expenses. Only 11% of the whole believe that technological advancements and less dependency on manual labour is a reason for layoffs.
Another significant finding of the survey is that 57% of participants are concerned about their job security in their organization based on the current layoff scenario. The fear of losing their jobs is evident among employees, which is reflected in their responses as 83% of respondents have confirmed that they are planning on switching jobs to avoid uncertainties amidst layoffs. 5% of participants have even shared that they are planning to move to independent business to avoid this corporate turmoil. This shows that employees are taking proactive measures to safeguard their careers in these uncertain times.
The survey also reveals that 81% of respondents believe, mass layoffs without prior intimation are unethical. This highlights the importance of communication and transparency in any organization's layoff process and also expresses the discontent of employees with unannounced layoffs.
71% of respondents are concerned about market inflation and its effect if there is a layoff in their organization. Inflation, coupled with job loss, can have a severe impact on employees' financial stability, which is a cause of concern for them. The survey states that a meager 2% of the participants feel that they have sufficient financial back-up while the rest are unsure as to where the scenario may lead them in case of a layoff.
The survey also indicates that the most vulnerable employees in case of layoffs are Contractual and Temporary Employees at 50%, with the ones next in line being Front liners marking 21%
of the total, the remaining 20% being mid-management, and 10% from senior management, as analyzed and voted by employees and senior management of multiple organizations. This highlights the need for organizations to have a fair and transparent layoff policy that considers the vulnerability of different employee categories and ensures that layoffs are conducted in an ethical and transparent manner.
Commenting on the survey, R P Yadav, CMD, Genius Consultants Ltd., said, "The survey results clearly indicate that the current scenario of layoffs is causing a great deal of concern and anxiety among employees. Organizations need to have better workforce planning and management strategies, as well as sound communication and transparency with their employees to avoid such situations.”
The current scenario of layoffs and job insecurity is a challenging time for both employees and employers. It is essential for companies to prioritize their employees' welfare and provide support during these uncertain times, which will go a long way in building trust and loyalty amongst the workforce. With the right approach and mindset, one can overcome the prevailing challenges and emerge stronger and resilient.
