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Labor + Economics

Is there a link between layoffs and CSR?

HR Dive

November 10, 2022

Labor + Economics

Is there a link between layoffs and CSR?

HR Dive

November 10, 2022

Photo by Maarten van den Heuvel on Unsplash

Dive Insight:

People management gets tricky amid economic downturn and crises in general. Fatmy’s research can serve as a reminder for HR professionals to approach hiring freezes, layoffs or other types of financial moratoriums with grace.

This can be critical, given shaky retention at many high-performing companies. Additionally, throughout 2022, HR experts continued to hammer home the importance of public-facing statements communicating strongly held company values — not for consumers’ sake, but to build the trust of future and existing talent.

A September 2022 report from Alight suggested worker feelings around purpose and company values are direct productivity drivers. Respondents said an employer’s environmental and social governance strategy (52%), as well as its public stance on social and political issues (62%), make a company stand out.

Fatmy’s research can serve as a reminder that people teams have an opportunity to be vigilant as a recession looms — and make sure a company can align to its values, even in crisis.

Read the full report here

High-CSR, U.S.-based organizations were “shown to have laid off significantly more employees” in 2020.
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