It’s a debate playing out at workplaces: Who should be included in a layoff? The behind-the-scenes process is complicated.
, or 5% of staff, after the company said it overhired during the pandemic. Many departments across the company were given specific financial cost-cutting targets to meet, said CEO Todd McKinnon, and did so in different ways.
Executives asked: “Where is the business? Where do we need investments?” Mr. McKinnon said, adding that the layoffs coincided with Okta’s annual planning process, which helped in determining which initiatives deserved attention and which could be jettisoned. “It was a difficult thing to go through, and difficult decisions.”
In addition to reviewing an employee’s performance history, many companies consider workers’ potential to adapt and take on new jobs in the future. “It’s really down to a one-on-one assessment of performance in determining who you’re going to keep,” said Paul J. Sarvadi, CEO of Insperity Inc., a human-resources services and outsourcing company.
Sarah Rodehorst, CEO of Onwards HR, whose software performs a statistical analysis during terminations to see if certain groups are adversely affected, said such reviews can uncover other problems. On a list of layoff candidates, a company might find it is about to fire inadvertently an employee who previously opened a complaint against a manager—a move that could be seen as retaliation, she said. “It’s so important to get this right,” she added.
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