Why Backdoor Layoffs Can Easily Backfire

Eric Mochnacz
March 27, 2023

Layoff discussions are difficult for businesses.

Which is why they avoid them. Instead, they try to create business conditions to create a situation where they conduct backdoor layoffs. Ultimately, they are able to get rid of a portion of their workforce without needing to have the difficult conversation or accept any of the financial implications of laying someone off.

This approach is problematic. Eric Mochnacz was featured in the SHRM Blog talking about how backdoor layoffs are bad for business and can easily backfire.

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The Results

Construction and Contracting

A commercial roofing contractor was in hyper growth mode. They had goals to increase their field workforce to expand their service area to additional states and geographical locations. If they were to grow their field workforce, they would also need to increase their administrative, operational and sales headcount to support the additional workload created by increased field work. Additionally, they were challenged in workforce retention and development, experiencing high turnover, and did not have a dedicated Human Resources professional to manage employee relations and compliance issues that come with trying to scale a business.

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