McKinsey & 'Go' | The consulting firm pays staff to look for another job - is it worth the risk?

Layoffs are now a staple part of the business landscape – in part due to mass hiring sprees over the pandemic and in part because of growing economic pressures on firms.

For most companies, redundancies come as an absolute last resort, especially because sacking your employees can have some profound consequences for your business.

Despite the short-term cost savings businesses face, layoffs can have a detrimental impact on the morale and productivity of remaining staff. And in some cases, employers are letting go of great talent and industry knowledge, which could have negative repercussions in the long-term. Layoffs can also disrupt an organisation’s culture, especially if they are considered to be handled poorly, and dismissed workers feel they have been treated unfairly.

That’s why many companies recognise the importance of laying off workers ‘properly’ and giving support to leaving staff, even though they soon won’t be a part of the firm’s community.