Compared to downsizing, a hiring freeze feels like the lesser of two evils.
Attrition plays a big role within organizations. Usually, businesses anticipate a certain number of people leaving their organization for several reasons. It could be that they found a new job, want to retire or just want to try something new and different. However, if too many people leave at once, the firm could suffer a loss of talent that can adversely impact the business.
Some companies, instead of laying off workers, push for attrition. Attrition is when employees leave. There are two basic strategies companies enact. For example, Elon Musk, shortly after taking over Twitter, issued an: workers must put in long hours with high intensity and be extremely “hardcore.” Many employees felt uncomfortable with this mandate and elected to pursue opportunities, resigning from the social media platform.
The second approach is to make it attractive for people to leave of their own volition by offering buyouts, severance packages or other inducements. When the workers leave, they are not replaced. The work is handed off to the remaining staff tasked with picking up the slack—often without any extra compensation. In a challenging environment, people may not complain as they see layoffs occurring elsewhere and worry about how hard it will be to find a new job.
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