How Do You Decide Who Stays and Who Goes?

Technology and ever-increasing transnational competitive pressure are altering the very essence of employment. To stay up, many businesses have been forced to reconsider their labour plans, resulting in abrupt and unpleasant adjustments. 

They usually resort to sporadic reorganization and periodic layoffs, which harm employee engagement and corporate revenue in the long run.

Layoffs occur more frequently than you may expect, regardless of whether a recession comes later or sooner. So how can HR make them more equitable?

The correct screening parameters, avoiding negative effects on protected categories of employees, publicly publicising the layoff decision, and parting on good terms can all make a difference.

Reasons for Layoff

1. A Need or Desire to Restructure

After a merger or acquisition, a business may opt to terminate redundant roles or rearrange departments to create savings. The money saved through layoffs can help support the business in the phase of transition.

2. Reducing Costs

A corporation may fire employees in response to a lower market for a commodity or to minimize labour expenses.

3. Eliminating a Function

Employers could subcontract a service that the organization no more does well or eliminate a service that has become unsustainable due to competitors or outdated due to modern advancements.

4. Relocation

Layoffs in the old place may arise from transferring services to a different region, city, state, or country.

How to Decide Who Goes and Who Stays?

1. Last In, First Out

Layoffs are another opportunity to reward loyalty. Of course, the newest employees must come under the chopping board first. This only shows that you value the number of years the old or senior members have put in to keep the company together.

2. Performance Reviews

You could keep the high-performing personnel while letting go of individuals whose statistics reveal they are underperforming if you used a performance layoff screening technique.

3. Overall Employee Rankings

Employers who want to keep their top employees favour layoffs based on overall employee rankings. Employees are evaluated from 1 to 10 based on the company’s criteria, such as attendance and capacity to do various tasks. The top employees are then retained by the employer.


The most senior personnel might not be the finest achiever. For example, the best sales rep with a diminishing client base or a dwindling industry may be less appealing than the 5th highest salesperson with a rising business book.

The screening process should represent characteristics that will be relevant to the company after the layoff. It could be knowledge of software applications or other technologies or another skill. Maybe it’s a combination of things, ranked in a matrix.