Disadvantages or drawbacks of no-layoff policy in a company?

Answer 1

The company would get stuck with excess workers in times of a slowdown, then every employee would suffer because the company couldn't afford to increase wages or benefits because it was stuck paying the salaries of all the excess people that they were not able to lay-off when business slowed down.

~ ♥ ~

Answer 2

A no-layoff policy sounds like a dream come true, at first. A guarantee that you'd always have a job. It means no indiscriminate layoffs, but laying people off because of a recession or financial failure or lack of work could still be an option. And a layoff is not the same as getting fired for an infraction. That could still happen. So don't get too excited. Similarly, in order to compensate for a surplus of employees, especially if workload was slow or they were over-supplied with personnel, they could initiate a hiring freeze which would not only prevent new people from joining the ranks, but could also put a cabosh on any raises or promotions for present employees. Things are not always what they appear to be, and in this instance, I would say there were more drawbacks than first meets the eye.

Answer 3

Lay-offs happen for a reason. In a no-layoff company, you're stuck on sinking ship without a good reason to take it easy for a few months on unemployment looking for other work. Yeah, it's nice to know you'll always have a job, but do you want it to be with a company that's so cautious and conservative and slow moving that they will never have to make that kind of adjustment?

Think about what kind of complacent, boring, unmotivated people that attracts. People doing just enough to not get fired. I'd rather be with a company that takes some risks, has some vitality and better opportunities as a trade-off for maybe getting laid off in abd economic times.

If you're fearful of taking control of your own future, there is no downside.

Answer 4

No Layoff Policy