The Hidden Cost of Minor Layoffs: When Employers Use Minor Infractions as a Back Door for Layoffs

Have you ever used the office copier for anything other than official company business? Or did you use a paper clip or a pencil?

If this is you, you might want to be on your guard.

Recently, a number of companies, from Meta to EY to Target, have parted ways with their employees over the most minor infractions, raising questions about whether this is a shady method of downsizing and issues of trust and integrity in the corporate culture comes into the spotlight.

Rebecca Trotsky, chief people officer at workforce management platform HR Acuity, warns that this can have devastating consequences for organizational goodwill. “If you’re in HR and you agree to let people go for these minor infractions for a short-term benefit… what exactly is that going to impact your long-term prospects as an organization and as an HR department? ” she said.

“This is dishonest,” said business trainer Dominic Monkhouse. “No one will work hard if there is no culture of trust. If you have to reduce headcount, don’t sneak people out the back door.”

“Losing a job in this economic climate is quite serious – it threatens basic survival compared to the minor ‘losses’ the company has suffered.”

Samantha Reynolds

Marketing Director, Helpside

Current examples of trivial dismissals have repeatedly made headlines. Employees have been terminated for all sorts of reasons, from claiming work-from-home meal credits to skipping the line to purchase merchandise—and yes, misusing the office copier. (Petite theft appears to have become a particular problem at tech companies, whose employees have become accustomed to generous perks but in some cases may have taken advantage of them.) While these violations may technically violate company policy, harsh penalties have increased more than a few eyebrows.

Samantha Reynolds, head of marketing at workforce management platform Helpside, points out the obvious unfairness of such situations. “Losing a job is quite serious in this economic climate – it threatens basic survival compared to the minor ‘losses’ the company has suffered,” she said. Reynolds points to the case of retail workers who were fired for purchasing items out of turn at companies where they often earned less than $15 an hour.

The impact on remaining employees can be damaging. “The message it sends to those who remain is that the point is that everything must be 100% exactly by the book,” Trotsky said. “And then employees will say, ‘Okay, I’m not going to check my email on the weekend’… It won’t be about meeting goals anymore; It’s going to be a very transactional relationship.”

While it’s questionable whether minor layoffs are a way for companies to reduce payroll while avoiding the negative publicity often associated with layoffs, recent research from workforce management platform Orgvue suggests that managers actually are struggling with staff cuts: More than half (54%) said they would rather relive the pandemic than implement it.

“If you’re in HR and you agree to let people go for these minor infractions for a short-term benefit…what exactly is that going to impact your long-term prospects as an organization and as an HR department?”

Rebecca Trotsky

Chief People Officer, HR Acuity

Using minor infractions as grounds for termination is even more dubious considering that more than 4 in 10 employees have observed or experienced some level of misconduct in the workplace, according to a study by HR Acuity – suggesting that companies may be selectively enforcing policies and while ignoring major employee problems.

HR leaders face crucial decisions in such matters. “To these HR people and these HR teams, I simply say: Do better,” Trotsky said. “Stand up and say: This isn’t going to work. We need to make a little more effort here because it will impact our brand reputation and our recruiting opportunities in the future.”

For organizations that have no choice but to reduce their workforce, Trotsky emphasizes the importance of best practices, including clear communication about the reasons for the layoffs, as well as transition support and outplacement services for those affected. “What we found in our studies is that I believe most companies make efforts to achieve a layoff in a way that is as humane as possible,” she said.

A long-term perspective is key, she emphasizes: “If you want to create a workplace where people are connected and motivated by work and are fully invested in the company’s mission, then it should be pretty easy to say, ‘ Okay, how are we supposed to treat people when times are not so good?'”

Perhaps most importantly, organizations should do everything in their power to avoid layoffs in the first place, Trotsky emphasizes. “Don’t set too much,” she said. “Be careful about getting people on board so you never have to get to that place.”