Apparently, hiring and firing strategies have no keen association. A deeper insight indicates an inseparable connection between the both. The enterprises fire a few employees to replace them with the new ones who have the requisite skillset and more energy to perform a job description well. The HR managers recruit new talent because they know they can undo wrong hires by appointing better options in the future. Under both situations, the cost of hiring and firing becomes a necessary evil. From trainees to mid-career jobs, the insecurity of losing a potential job remains there in some way or the other. Consequently, the workers try to protect their job positions by putting extra efforts, performing high and penetrating into the organizational culture.
Probable reasons to fire
The possible reasons for firing the employees may take any of the following forms.
- Persistent under-performance
- Breach of code of business ethics
- Fraudulent and criminal activities
- Leakage of secrecy or intellectual theft
- Deteriorated physical and mental
- Severe economic crises
- Sudden contraction of operations
- Workplace harassments
- Mergers and change of management
Definite hiring objectives
Human Resource is considered to be the most efficient asset and a factor of production. The objectives of periodic hiring are backed by any of the following reasons.
- Expansion in business
- Distribution of workload
- Development of future human resource
- Boost in efficiency through young hires
- Induction of innovation
Cost of imbalance
Every enterprise strives for achieving and retaining an acceptable balance amongst all HR functions. An imbalance in hiring and firing may cost a company in terms of
- Low production and productivity
- A bad reputation in the industry
- Less employee retention rate
- Increased opportunity costs
- Barriers in completing orders
- High customer disengagement
- Horrible brand erosion
- Declining customer loyalty
The HR specialists try to maintain an equilibrium in the frequency of hire, rate of retention, and firing strategy. Mid-career jobs are characterized by security as compared to entry-level positions. Therefore, things chiefly remain favorable for the employees at mid-career jobs. Firing and downsizing fear those who are about to retire or who have been recently recruited as a backup for future expansion.
Gallup reports that the annual cost of disengaged employees worldwide touches $500 billion. These employees, if not fired on time, may ridiculously ruin lots of businesses. It means firing is not as bad as most people think in the external environment.
However, the classy HR managers look for a few things while firing the employees. They make sure that
- The dignity of the fired workers is not suffering
- The business functions remain in transition
- No legal issues arise on the part of workers
- The company has a better replacement option
- The removal requirements are met properly