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The Genius Consultants’ study, based on a survey of 1,223 employers and 1,069 employees, identifies technology as the key factor behind the rise of silent layoffs.
The post has caught the attention of social media users who are talking about companies and their strategies.
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While companies are reporting consistent growth in profits year after year, the disturbing trend of layoffs, particularly in the form of ‘silent firing,’ is also gaining momentum. According to a recent survey, despite the steady increase in profits, companies are resorting to subtle methods of downsizing, leading to concerns over job security for employees.
The survey, conducted by Genius Consultants, a prominent employee solutions and HR service provider, revealed that silent firing has become increasingly common, especially with the rapid adoption of technology. The term “silent firing” refers to the practice where employers discreetly force employees out of their positions, often without formal layoffs. Instead of directly terminating employees, companies employ strategies that push them to resign voluntarily.
The report highlights that about 10 per cent of employers have started opting for silent firing as a means to eliminate positions deemed unnecessary. This trend is concerning for the future of job security in the country, where technological advancements seem to be the driving force behind such decisions.
What is ‘Silent Firing’?
According to the report, silent firing is often linked to the increasing integration of technology into the workplace. As businesses strive to keep up with the evolving technological landscape, employers are adopting various strategies to manage their workforce. These strategies, often veiled as attempts to streamline operations, are making certain roles redundant.
The Genius Consultants’ study, based on a survey of 1,223 employers and 1,069 employees, identifies technology as the key factor behind the rise of silent layoffs. The findings suggested that companies are opting to upskill existing employees rather than hiring new ones or offering additional positions, leading to a rise in layoffs in specific sectors.
Skill Enhancement or Unnecessary Layoffs?
The survey found that 79 per cent of employers prefer to invest in upskilling their current workforce to keep up with technological advancements. This strategy, while beneficial in some cases, has led to the unfortunate consequence of fewer job opportunities for fresh talent. On the other hand, 10 per cent of companies said they prefer layoffs as a means to reduce unnecessary positions, further compounding job insecurity in the market. Additionally, 6 per cent of employers admitted to assigning excessive workloads to underperforming employees, pushing them to leave voluntarily.
Amid this unsettling trend of silent firing, the profits of companies continue to skyrocket. In 2019, the Central government slashed corporate tax rates, which provided a boost to businesses. However, instead of reinvesting these profits into job creation or employee welfare, many companies have opted to downsize. Despite the increase in corporate profits – rising fourfold in the past few years – the average salary increment for employees has been a mere 1 per cent.
This disconnect between the soaring profits of companies and the stagnating wages for employees highlights the growing gap between the success of businesses and the well-being of their workforce. For the average employee, the benefit of increased profits has been elusive, as companies focus more on maximising their margins than on improving job security or offering substantial raises.
