Hiring and Laying Off Employees During The Pandemic: When Should You Do It?

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The workforce is the backbone of any business operation. Not only does it mainly comprise of individuals that are responsible for bringing in the flow of revenue through sales and daily operations, but the business support departments in the form of human resource personnel and management are integral in the inner workings of the company.

However, the workforce is more than just company assets; these are individuals from different walks of life that are trying to put food on the table for their families. Most employer-employee relationships are two-way, with the business providing financial support to these individuals while the employee provides a steady flow of revenue towards the company. Thus, both parties are benefitting from each other’s relationship.

The Dilemma of Laying Off Employees

But ever since the second quarter of 2020, many businesses have been cutting down on their monthly expenditure due to the current economic recession caused by the COVID-19 pandemic. Usually, financing the workforce in terms of salary and monthly supplies will take up most of the monthly expenditure. That said, most employers are forced to furlough employees as a means of maintaining business continuity.

Most employers have stuck in a rock and a hard place when it comes to the flexibility of managing the workforce. On the one hand, business organizations will need to have stricter parameters when screening applicants to minimize monthly expenditure while still increasing sales revenue. On the other hand, laying off workers can significantly impact the productivity of the company, which can lead to a decrease in revenue.

There are, businesses will need to take into consideration the skills and the roles of each employee in the organization. But should you be laying off employees in times of uncertainty? When should you start hiring and replacing laid-off employees? Here are some factors that you’ll need to weigh-in on.

Laying Off Workers During Uncertain Times


But right before you start laying off workers, you will need to make a variety of different considerations. Sometimes, you won’t have to lay off workers since there are a variety of ways to cut down on monthly costs. You might want to have been transparent and frank with your employees regarding the state of your company; this will help them understand why there might be cuts to certain incentives.

Remember: you’ll need to exhaust any other means of cutting down on cost rather than laying off your workers. Your workers are the lifeblood of your business, and they are your primary source of cash flow. Laying off workers can severely impede the productivity of your business, even though this will reduce your monthly cost. ;

If you have already made the final decision of furloughing certain employees, you will need to have a grounded basis for their termination. Outright termination without any proper basis could lead to serious legal allegations, which might cause issues. Unless the individual is bound to an at-will contract, the termination will need a grounded basis.

In certain situations, disgruntled customers might try to find a loophole in their contract. If you’re not quite sure about the mechanics surrounding terminations and the labor laws in your area, you can always ask for assistance from experienced employment attorneys. Having proper professional consultation from legal experts can ensure that you won’t have to deal with legal entanglements that disgruntled employees might cause.

Hiring During the Pandemic

Compared to laying off workers, hiring during the pandemic shouldn’t be a problem, especially when you’ll have a larger pool of applicants that you can choose from. Still, it’s important to remember that you shouldn’t necessarily hire the first person that walks inside your facility.

After you have a pool of candidates that you can choose from, you can now start picking the appropriate candidates for the position based on the following parameters:

  1. Will their skill set help the company’s revenue in the long-run?
  2. Are there any references that you can use?
  3. Are they amenable to working extra hours as a means of covering extra work?

Although these are stricter hiring guidelines, these are necessary for bouncing back your company’s economy. During trying times, you’ll need a highly-efficient workforce that can handle tasks in a timely and professional manner.

Although it might seem like you have two choices that you can choose from, life isn’t black and white as it seems. There are a variety of strategies and ways of cutting down on monthly expenditure without having to furlough employees. Still, you’ll need to weigh in on your decisions. Sometimes, the best course of action is ensuring that everyone stays loyal to the company, even during tumultuous times. Although it might seem like the economic crisis will stretch out, you just have to be optimistic and hopeful about the future.

While it might be tempting to lay off workers that are taking up a good percentage of your monthly spending, you will need to keep in mind that they are also responsible for much of your company’s cash flow.

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