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Wed, Feb 11, 2009 18:18 EST

Layoffs: Calculating the Odds You'll Lose Your Job

Topic: Personal Management

Blog: Career Connection

Current Rating: 3 Comments: 14

"Will I still have a job tomorrow?"

With the U.S. economy in a far-reaching recession and companies announcing layoffs seemingly every day, that question looms large in every working person's mind.

Obviously, some employees are at greater risk of losing their jobs than others. What's not so clear is how to calculate that risk. So for the past several months, I've wanted to come up with some kind of risk assessment that would help IT professionals (really, any professional) get an objective handle on their odds of getting laid off.  

You may be wondering why anyone would want to determine their likelihood of losing their job. I think a 'layoff risk assessment calculator' could be helpful. A lot of people worry unnecessarily about getting laid off. And a lot of people who do get laid off are completely blindsided by it.

A risk assessment for layoffs could help IT professionals determine whether they're at high- or low risk of losing their jobs, so that low-risk professionals can rest easy and carry on with their work, and so that high-risk employees can be proactive and prepare themselves emotionally, professionally and financially for when and if their jobs get cut.

My problem: I have no idea how to create such a risk assessment. I developed a list of variables that I think could indicate someone is likely to get laid off. I made another list of variables that could indicate someone is unlikely to get laid off. These lists are based on my own knowledge and experience, and on conversations I had with two CIOs who shared with me their approaches to deciding which jobs will be eliminated during layoffs.

My goal is to develop an accurate and plausible assessment—one that will really help people get a grip on their futures. But coming up with an assessment like this is difficult for a variety of reasons. So I need your help.

Take a look at my lists below and let me know which variables you would add to or subtract from either list. Also let me know if you think certain variables should be weighed more heavily than others, and how you think the assessment should be structured. I'm thinking of structuring it like a quiz, where people give themselves points for each negative variable (e.g. each strike against them) and subtract points for each positive variable; people with high scores are then highly likely to be laid off and people will lower scores are less likely to be laid off. Let me know what you think.

And again, keep in mind that the goal of this assessment is to help people, not to scare people.

Variables that Could Indicate Someone Is Likely to Get Laid Off

1. Your employer is not meeting its financial plan.
2. Your salary is at the high-end of the pay scale for your profession or function.
3. A position or function you help support has been eliminated or restructured.
4. You work on a project that has been cut or that you sense is going to be cut.
5. You gossip or complain a lot.
6. The work you do is mundane or repetitive in nature (e.g. re-setting passwords or setting


You do not have flash or javascript support.
Average (3 votes)
3
 
 
Fri, Feb 13, 2009 10:25 EST
Anonymous user
Posted by: Anonymous
Rating: 60

Here was the Writing on the wall that programming and tech support jobs were going to be cut (and they were within 6 mos):

The company (quasi-government entity) was shopping for third-party products to replace two production apps.

They were shopping to outsource a big app that was presenting as a need.

HR sent out suspicious emails (rights of at-will employees, retirement benefits after time of service, enforcement of just-plain stupid rules...)

HR met frequently with managers.

HR sent out emails asking whether anyone wanted to take early retirement.

 
Fri, Feb 13, 2009 11:21 EST
Posted by: MEK
Rating: 70

Meridith,

I couldn't help but smile a little as I read this. It is such an I.T. thing to wish to creak some type of analysis-engine or application where one could just plug in the variables and get an answer on the odds of whether or not you are going to be collecting a paycheck next week. Almost the Geek equivalent of a Cosmo questionnaire (Cosmo's IT Self Preservation IQ --Question #12: Has your boss stopped complimenting you on the elegance of your code? Question # 13: Does he now flirt with the cute little x86 Virtualization Cluster instead of the AS/400 that you manage?) Could be bad times for us all....

More seriously it is natural for the typically analytical mind to try and quantify these things. (I however, tend towards an anarchist personality so I frequently go with my gut -- it is wonder I ended up in I.T. as a career). But when it comes to measuring the likelihood of one's continued employment, cold hard analysis frequently does not play into the game (unless there are obvious signs such as a company that is awash in Red Ink, has filed a WARN, or has senior executives being asked to testify before Congress).

In most cases if you are beginning to FEEL like your job is on jeopardy, it probably is...

Nice suggestions of things to look out for though.

 
Fri, Feb 13, 2009 13:10 EST
Anonymous user
Posted by: DV
Rating: 70

Dear Meridith,

Focusing on the list of "Variables That Could Indicate Someone Is Unlikely to Get Laid Off", those seven indicators would prove someone is valuable for a given company. My case: those seven points checked and I was fired from my Lead + Acting CTO position. Looking back at the list-of-risks, I can't check those points. Then why was I afraid of losing my job, even taking into account that I was key for the products/projects being developed/researched and no-one would replace me? I mean, no one in the company can do what I did and other old pros refuse to join that company?
Well, because of the human factor.
You can't be "more popular" than your boss. You can't influence the opinion of your COO's wife who dislikes you because of the way you said "hello" when he introduced you to her. You can't know that your CEO's father was violent and now your CEO hates people with moustaches because his father had one.
There's a crisis going on, but people with lots (and I mean *LOTS*) of money fire people "just because". Then other people fire people to feel better, to receive more attention; that's "just because" too. There are other cases and they all hurt their companies and their products/projects.
My point is: Your starting point is "you are at risk if these conditions are met AND your company/boss behaves logically".
None of my former bosses followed the teachings of Surak.
I have been fired for "being geekier than the company's average".
Id est, just because.
And I saw it coming for no logical reason: I just had a bad feeling.

Best regards (and a hug).

 
Tue, Feb 17, 2009 9:26 EST
Posted by: Meridith Levinson
Rating:

You make really good points, DV, that the decision to cut certain employees is not always a logical/objective/un-emotional one and that personality/psychological factors figure into staffing decisions (and thus, need to figure into a layoff a risk assessment, as well.) Thanks so much for sharing your experience and perspective, and for the hug, which is always appreciated. :)


 
Wed, Feb 18, 2009 11:10 EST
Posted by: Meridith Levinson
Rating: 90

Thanks, MEK. You TOTALLY get it. ;)


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