Redundant Roles Don’t Have to Mean Layoffs: 3 Smarter Alternatives

As organizations grow, they’ll eventually face the challenge of “redundant roles.” Redundant roles are positions that no longer align with the organization's needs or business goals. 

When a company recognizes that certain roles are no longer effective, the usual reaction is to lay off current employees and start searching for new talent. 

While this may feel like an easy answer, this approach puts company reputation, employee well-being, and team morale at risk. 

But what if we told you there were multiple, people-focused approaches that won’t just eliminate these risks, but help your business retain valuable talent? 

Let’s explore three effective alternatives to layoffs.

The Case Against Layoffs

While layoffs can provide immediate financial relief, they have long-term consequences. Layoffs cause mistrust in leadership and decrease the morale of the remaining employees. This loss of trust and morale can lead to disengaged employees, decreased productivity, and an overall decline in performance. 

Additionally, layoffs can damage the company’s public image and make attracting future talent more difficult. Instead of focusing solely on layoffs, companies should explore alternatives that protect both their employees and their brand reputation.

Alternative #1: Reskilling and Retraining Programs

One of the best ways to address redundancy in roles is by investing in reskilling and retraining programs. 

At Pathways, we specialize in professional development, upskilling, and reskilling for companies needing to reshape their workforce. We consult with your team to find where they fit into your company’s future and enroll them in online courses to obtain the skills they need to get there. 

Book a no-obligation consultation!

Here’s how your company can benefit from reskilling:

1. Employee Engagement: Employees understand that reskilling programs mean you’re investing in their future. It shows that the company values their contributions, which helps with retention and engagement. 
2. Cost-Effective: Training current employees can be less expensive than hiring new talent. Familiar team members already understand the company culture and workflows.
3. Flexibility: A more skilled workforce can adapt better to changes in the market, allowing the company to be more agile.

 

 

Alternative #2: Internal Mobility and Role Redesign

Internal mobility and role redesign allow organizations to keep employees engaged and reduce redundancy without resorting to layoffs.

Internal mobility is when employees are encouraged to move within the organization into new roles or positions that better match their skills, interests, and/or career aspirations. 

On the other hand, role redesign is when companies shift the responsibilities and requirements of existing positions to better align with the company’s current needs. It can look like redistributing tasks and assembling new departments while retiring old ones.

Here’s why internal mobility and role redesign can be beneficial: 

1. Retention of Talent: Allowing employees to shift into new roles helps retain experienced staff, reducing turnover and maintaining knowledge within the team.
2. Culture of Opportunity: Promoting internal mobility fosters a culture that encourages growth. Employees and new talent are always looking for a company that offers opportunities for advancement.
3. Innovation: Redesigning roles can lead to new ideas and improvements in processes. Employees who understand different aspects of the business can bring more knowledge and fresh perspectives.

Alternative #3: Job Sharing or Reduced Hours

Job sharing or reduced hours can be an effective solution to reduce redundancy while supporting employees. While we prefer the previous alternatives, this approach can still prevent the negative effects of a company-wide layoff. 

Job sharing allows two or more employees to share responsibilities for one position, transitioning both employees into part-time roles. These team members can work fewer hours while still contributing to the organization. 

Here are a few of the benefits of job sharing and reduced hours:

1. Work-Life Balance: Employees can maintain a better work-life balance, reducing stress and increasing overall satisfaction. This can lead to higher productivity rates.
2. Cost Reduction: Instead of letting go of employees, companies can cut costs by adjusting hours, keeping valuable talent without the financial burden of full-time positions.
3. Flexible Workforce: Businesses can adapt more easily to fluctuating workloads. A shared role can respond effectively to changes in demand while retaining skilled workers.