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VOL. 48 | NO. 30 | Friday, July 26, 2024
Layoffs are an easy fix but can cause long-term damage
Do you remember when layoffs were unusual? They were a last resort that companies would only take if they had no other choice. Layoffs were shocking and a mark of shame for employers who couldn’t seem to find any other option.
Today, layoffs are common and can even be a badge of honor for a company, having evolved from a last resort to a first stop on the list of ways to save money and, in many cases, increase stock prices.
Layoffs have become so normal that executive leadership sometimes fails to mention to anyone that a layoff has occurred. And the annual reviews that were once used to help improve someone’s career are now the first place an employer might look for the best candidates to lay off.
It’s inhumane for the employees who are shown the door. Employees who are laid off for any reason can face career-long ramifications that we often don’t think about. It’s such a painful topic that those who were laid off often don’t talk about it. Or, they may pretend it’s normal.
Layoffs bring “long-term negative consequences, including health issues, significant mental and financial stress, and a 1.3 to 3 times risk of suicide,” author Kyra Bobinet states in her book, “Unstoppable Brain.”
A Harvard Business Review article notes “displaced workers have twice the risk of developing depression and four times the risk of substance abuse.” It also notes the cumulative effect of unemployment. Displaced workers often experience long-term income loss that stick around for their entire career.
“For example, workers laid off during the 1980s recession saw a 30% earnings decline and, 20 years later, most of them still earned 20% less than peers who retained their jobs.”
These are startling statistics. Job loss can be akin to the death of a spouse. It’s losing a big part of your identity, which is shocking and hard to recover from. In our achievement-based culture, it can feel like a reflection on who you are as a person. It can feel like a reflection of failed performance.
If you have gone through a layoff, I empathize with your experience. But, do not take too much time off between opportunities. Start looking as fast as you can. The quicker you find something new, the more you will minimize the financial and emotional impact of the experience. And, the less likely the layoff will follow you through your career and your finances.
Reach out to your loved ones for support. Many people have had similar tough experiences. But, sadly, we often don’t talk about it enough.
Understanding that you are not alone in this experience can also help to move you forward to your next chapter.
Angela Copeland, a leadership and career expert, can be reached at www.angelacopeland.com.