LHH, a leading integrated talent solutions provider and global business unit of the Adecco Group, revealed the findings of its 2024 Outplacement and Career Mobility Trends Report. The report reveals 51% of UK HR leaders are considering or have implemented layoffs in 2024 due to a cooling job market.
Impact of Cooling Job Market on Employees
The strain is also being felt by UK employees with 65% of HR leaders considering redeployment as an alternative, and 20% of UK HR leaders have reported the highest incidence of a hiring freeze – followed by Canada (19%), the United States (14%), and Australia (12%).
The 2024 report highlights an increased focus on upskilling employees and a prioritisation of internal mobility to retain top talent. Strategic talent management is on the agenda as 26% of UK organisations have a redeployment plan in place.
These retention strategies, which are designed to reduce employee turnover and foster employee engagement include generous benefits packages (25%), rewards and recognition programmes (22%), leadership development training programmes (22%), a culture where employees can easily grow their careers (22%) and manager effectiveness training (21%).
Where layoffs are unavoidable, comprehensive support programmes help to ensure a smoother process for both the employer and the employee. The report reveals a disconnect between the support HR leaders report and what workers actually experience. Globally, 47% of HR leaders stated that they offered mental health support, whereas only 14% of workers reported receiving it.
Career coaching was also a topic for contention as 45% of HR leaders globally stated that they had offered outgoing employees this assistance, compared to the 10% of workers that actually reported receiving this support from their employer.
Burnout and Its Effect on Remaining Workers
When laid-off workers have access to the help they need, it reassures the remaining workers that if laid off someday, they’ll receive some level of support. Layoffs affect more than just HR teams and impact employees. Globally, 25% of HR leaders worry about burnout from increased workloads on remaining staff.
Worker’s burnout needs to be tackled head-on to improve morale and ensure business continuity. Due to burnout, 28% of global workers considered leaving, and 21% became less engaged at work.
The report also revealed the top reasons for employees staying in their roles, with half of employees globally (50%) stating that flexible work options kept them content. Nearly a third (31%) reported that a culture where career and skills development are supported meant that they had stayed with their employer.
JC Townend, CEO at LHH for the UK and Ireland said: “Layoffs are a tense time for any organisation and in the last year, they presented some real challenges for many business leaders. Job openings are expected to recover in 2025, offering more opportunities for redundant employees internally and externally. Redundancy can provide employees with an opportunity to explore new career paths in a shifting job market. During this time, they can assess their skills and interests, address training gaps, and position themselves for long-term employability.
