A recent survey by Resumebuilder.com found that half of companies admit that 75% or more of the layoffs they made in the past year weren't necessary to cut costs.

Key findings of the survey include:

• 80% of respondents said their company chose to lay off an employee instead of firing them.
• 31% of business leaders surveyed said that performance is always a factor in layoff decisions.
• The top reason for hiding termination decisions behind layoffs is to maintain company morale.

One of the biggest reasons companies disguise performance-based terminations as layoffs is to avoid conflicts.

Here's why this strategy can do more damage than good.

Your Remaining Staff Looks to Exit

If you've ever been involved in a layoff and were one of the survivors, you know how unsettling the entire experience is. You sit at your desk trembling, waiting for your name to be called or for an email requesting your presence in the conference room. At the end of the day, you're relieved to find out you're still employed, well, at least for another day.

You find yourself working in a constant state of anxiety, dreading when the next round of layoffs might occur. For many, the uncertainty becomes unbearable, prompting them to explore new job opportunities and gauge their options elsewhere.

You've Destroyed the Trust You've Worked So Hard to Build

If you've hired smart people (and let's hope you have), they have a pretty good idea of who is doing the work and who is slacking off. In most situations, staff members have long wondered why certain people remain employed by the company. When non-performers are released during a "layoff," people know they're being lied to when told the cuts are due to cost-cutting.

It can take years to build trust with your employees and only a nanosecond to destroy it. Are you willing to give up the trust you've built with your team because you are unwilling or unable to have a conversation with people about their performance?

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