In today's economic and business climate, who isn't worried about the possibility of job loss? To manage anxiety and be more proactive, learn to watch for layoff warning signs.
Layoffs don't happen overnight. They're usually part of employer contingency plans in the event there is a downturn or negative earnings hit to the bottom line.
A layoff could depend on any number of factors. Three of the most common ones are:
- Lack of growth in an industry or profession. A declining need for the services and products your company provides can cause layoffs. Technology breakthroughs can cause more labor intensive activities to be eliminated resulting in job loss as well.
- Change in strategic direction. Unfortunately, the recession has caused many companies to revert back to narrow product and services niches instead of moving forward with strategic initiatives. The brave few may be advancing into entirely new areas requiring a different skill set; resulting in…You guessed it…layoffs.
- Loss of key clients or customers. If the business has a few clients who make up the lion share of revenues; then if one or more of these clients leave, it could significantly impact the bottom line and cause layoffs.
A not-so-comforting reality today is that small and large companies are laying off workers in industries that were formerly thought to be recession-proof. If you are concerned about a potential layoff, don't panic; start developing a job search plan just in case.