Who Usually Gets Laid Off First and When? Newer employees are at risk of getting laid off in the early round of downsizing, as the "last in, first out" saying goes. In some cases, recruiters and higher earners are let go as well.
The last employees to be hired become the first people to be let go. This makes sense logically. If they were recently hired, they probably haven't become as strong of organizational assets yet.
However, patterns emerging during layoffs earlier this year show that non-essential departments, meaning those that don't contribute to the core functionality of the business, are the ones that often see cuts first.
(a) Layoff shall be made in accordance with the relative seniority of the employees in the class of layoff. In determining seniority scores, one point shall be allowed for each complete month of full-time state service regardless of when the service occurred.
The "top 20" percent of the workforce is most productive, and 70% (the "vital 70") work adequately. The other 10% ("bottom 10") are nonproducers and should be fired.
Additionally, severance pay is negotiable and can be scaled depending on several factors including the employee's years of service with the company or their level of seniority.
Some ways to help the decision-making process include: Letting go of your most recent hires. Looking over your past employee assessments and employee reviews. Ranking employees and identifying which are the most valuable based on their skills, productivity, and past-accomplishments.
When are layoffs most likely to occur? Since 2001, most layoffs happen in January and December and appear least likely to happen in February and March.
Unfortunately, even high-performing employees may be terminated during cost-cutting measures. The focus shifts from individual performance to reducing payroll, and talented employees are often casualties of budgetary constraints.
That need for transparency about layoff decisions is part of the reason many employers have historically decided to let go more recent hires first, according to Sandra Sucher, a professor at Harvard Business School who studies layoffs.
The middle of the week—Tuesday, Wednesday, or Thursday—is usually considered the best time for laying off employees.
Whether or not to rehire laid-off employees is mostly a matter of the employer's judgment. If it's been less than six months from when you laid off an employee to when you need someone in the position again, it is good practice to rehire the same employee.
The seniority-based layoff principle is often the first one used when it is time to cut back. Downsizing requires some, or, in the worst-case scenario, many employees to be laid off, so the Last In, First Out method is regarded as a 'safe' option for doing so.
Patterns emerged during mass layoffs in 2023, showing that the departments deemed non-essential or that do not directly contribute to the core functions of the business are often the first to see cuts. It isn't about who necessarily, but what they offer to the company when pressed to make hard economic decisions.
Recessions often lead to workforce reductions, particularly in sectors like retail, manufacturing, technology, and hospitality that are more sensitive to economic shifts. On the other hand, industries such as healthcare, education, and government services tend to be more stable.
From Wikipedia: “The Worker Adjustment and Retraining Notification Act is a United States labor law which protects employees, their families, and communities by requiring most employers with 100 or more employees to provide 60 calendar-day advance notification of plant closings and mass layoffs of employees, as defined ...
Normally, layoffs are in seniority order regardless of time base; that is, the least senior employees, regardless of whether they are part time, intermittent, or full time, are laid off first.
Three main methods of selecting employees for layoff are "last in, first out," in which the most recently hired employees are the first to be let go; reliance on performance reviews; and forced rankings, said Kelly Scott, an attorney with Ervin Cohen & Jessup in Los Angeles.
In cases where an entire part of the business closes, there are teams with no low performers that get cut.] But, in any sizable layoff, there are going to be good people, strong performers, who were just in the wrong place at the wrong time.
Employers typically consider the employee's salary level and length of service to calculate severance pay. Most employers provide an average of one to two weeks' salary for each year of service. They may also adjust the amount based on an employee's tenure or role in the company.
If you are fired or laid off, your employer must pay all wages due to you immediately upon termination (California Labor Code Section 201). If you quit, and gave your employer 72 hours of notice, you are entitled on your last day to all wages due.
During a RIF, the company evaluates each position to determine which ones are necessary for the business. In contrast, during a layoff, the company may evaluate employee performance to determine who will be laid off. Finally, there is a difference in how employees are compensated during the workforce reduction.