More importantly, leaders need to determine who among their remaining workforce can fill layoff-induced gaps. “If people don’t have the ideal set of skills to perform certain work, they’ll have more anxiety,” says David Marzo, Korn Ferry’s Global Vice President of Solution Design. The key, he says, is to take a methodical approach to reviewing talent and assess who is impacted. A firm can then provide appropriate reskilling, which Marzo says can now be offered in the flow of an employee’s current work thanks to recent developments in AI.
Contract labor will undoubtedly play an increasing role in how firms address labor shortages, according to Marzo. “It mitigates risk in an organization,” he says. Earlier this year, a reported 37% of companies that had recently conducted layoffs were hiring contract labor as replacements. Experts say that in addition to helping share the workload with full-time employees, contractors provide firms with the ability to quickly flex their workforce up and down as demand dictates.
Managers especially need to step up in the wake of layoffs, says Brad Frank, a Korn Ferry Senior Client Partner in its Technology Practice. “They need to articulate how their employees’ work fits into the company’s roadmap.” It’s an opportunity for leaders to connect workers’ additional responsibilities with long-term career development—something our research has shown sets top firms apart. “But those management skills are not necessarily innate,” says Frank. “They need to be trained.”
To learn more about how to best manage your workforce in today’s current climate, explore our Workforce Transformation practice.