As the job market continues to evolve, HR leaders are preparing for a potential wave of layoffs. According to a recent survey by LHH, nearly two-thirds of HR leaders expect layoffs in the next 12 months. This trend is driven by companies' efforts to reduce payroll costs, with 72% of business leaders and 80% of CEOs anticipating involuntary staff reductions.
However, instead of solely relying on layoffs, organizations are exploring alternative solutions to reduce their workforce. The survey found that 99% of companies regularly examine options such as retirement incentives, voluntary departure programs, redeployment, and temporary leave. This shift towards more strategic workforce planning is a positive development, as it allows companies to prioritize employee well-being and career development.
One notable trend is the increased focus on career transition services for nonexempt employees. In 2024, only 58% of nonexempt employees had access to these resources, but that number has jumped to 79% in the current survey. Furthermore, 38% of companies that offer career transition services to nonexempt workers also provide comprehensive programs, such as one-on-one coaching and online tools.
For HR executives, recruiters, and professionals, this trend presents an opportunity to prioritize employee development and retention. By investing in career transition services and alternative workforce solutions, organizations can reduce the need for layoffs and create a more agile and adaptable workforce.
As we look ahead to 2027, it's clear that HR leaders will need to be proactive in managing their workforce. By emphasizing career transition services and exploring alternative solutions, organizations can mitigate the impact of layoffs and create a more sustainable and effective workforce strategy.