Kill the business by sacking the wrong employees

Writing in CIO magazine Bruce McCracken says cutting the wrong employees can kill a business.

He writes; “Retaining strategically important IT staff in a recession can provide an organisation with competitive advantage. Outsourcing selectively now is a good option, but retaining in house project management skills is the key for IT leaders when the economic climate improves”.

This applies to more than just IT staff, many businesses are still in panic mode slashing through their payrolls in order to cut costs. The problem is not so much the cutting — although there are cogent arguments against panic driven staff cuts — but the indiscriminate way many employers choose to reduce staff headcount is often doing more harm than good.

McCracken supplies anecdotal evidence to support this view and writes;

When the storm passed after the recession of 2001, some firms were in position to increase market share at the expense of those who had made unwise decisions during the downturn. In an effort to reduce costs, many companies implemented across the board cuts and wound up sacrificing their future.

via Cutting the Wrong Employees Can Kill A Business – layoffs, leadership, outsourcing – CIO.