Description

Recently, companies have been in cost cutting mode. The most obvious result of this cost cutting, at least when it comes to your career, is that companies have been laying off large numbers of workers across all industries. But these very same companies are starting to balk at the negative press associated with "yet another layoff". This week, I take a look at the subtle ways that companies continue to reduce their headcount in a less public manner.

Return to Office Mandates

During COVID, social distancing and stay at home orders lead many to resort to remote work. During that time, many companies experienced record revenue and added staff to support future projections. These activities showed that remote work could be successful and many workers enjoyed the freedom offered by these new policies. Now that the height of the pandemic has passed, companies transitioned to a hybrid model where some days were worked remotely and some were worked in the office.

I won't argue that there are benefits to being in the office with your co-workers, but now companies are changing their policy to switch from a hybrid schedule to one requiring workers to be in the office five days per week. The freedom that workers once had has been quickly eliminated. In some instances, this policy shift may make sense, but in most cases, this change leads to a situation where people voluntarily leave to find an opportunity that still offers the flexibility that they had become accustomed to.

Reduction in Promotions and Frozen Salaries

Beyond return to office mandates, employees are finding fewer opportunities for advancement and smaller salary increases. When a company is in the process of laying off employees, this often includes cancelling most of the open positions. For the positions that remain open, you will face additional competition from those on the reduction list as well as everyone else looking for a promotion.

In addition to limited opportunities, many are finding that salary increases are small or non-existent and bonuses are reduced or eliminated all under the banner of controlling costs. Those expecting some sort of increase to their bank account will face dissatisfaction and demotivation. And for the company, this could be a way to reduce staff without the stigma of another round of layoffs.

Overworked and Burnt Out

One would hope that layoffs are targeted to areas where shifting business needs have lead to reduced workloads, but they often hit areas that were already understaffed. Those that remain are often asked to do "more with less". Goals are set more aggressively in order to recover some level of profitability.

With the constant fear of being "next", people will just accept the additional workload and strive to do everything asked of them, even if it means working longer hours and opting not to take all of their allotted time off. This is an unsustainable position that will only lead to burnout.

Singled Out