"Damaged Goods": Companies Shunning Laid Off Workers

The past few months have seen huge numbers of layoffs, particularly in the tech industry, who have laid off over 150,000 workers already this year.

Now, recently laid off workers looking to rejoin the industry are facing a new hurdle, as they may now face the stigma of being "damaged goods" among hiring managers and recruitment consultants.

Reasons For Layoffs

Publicly, one of the most commonly cited reasons for companies making layoffs is as a cost-cutting measure to improve profitability.

However, Chief Career Advisor at Resume Builder, Stacie Haller, in a recent article, said that this is "cover for firing employees."

Most Layoffs for Performance Reasons

The statement was backed up by a Resume Builder survey, which asked business leaders their reasons for layoffs.

Over half of the respondents said that over 75% of their layoffs were not necessary to balance the costs and revenue of the business.

Stigma

A recruiter and career coach, Brian Creely, believes that a damaging stigma has built up around the cast off employees.

Creely thinks that many layoffs have nothing to do with performance but, despite this, believes "there's an unspoken bias."

Damaged Goods

Creely was unable to change the mind of a director at a California automotive tech company in a particular conversation regarding recruitment.

The director was steadfast in their unwillingness to hire laid off workers, which they saw as "damaged goods."

Table Scraps

While some saw layoffs as an opportunity to hire hungry workers, Slack messages in a group Creely is in suggest others are less interested.

In reference to whether Meta layoffs are an opportunity, the chief HR Officer of the company messaged that they did not want to hire "somebody else's table scraps".

Meta Elite Hires

The career coach argues that those hired my Meta in particular represent the elite in tech workers, and laid off Meta workers should be given more of a chance.

He believes getting a job at Meta is exceedingly difficult "so to say that they hired a bunch of jokers ... that's something I have a big issue with."

Rejects

Clutch Talent's founder, Jovena Natal, who finds workers for tech companies in San Francisco, offered up some potential reasons companies might not want to hire tech layoffs.

One of the reasons she suggested was that they are put off by workers who have received too many rejections.

Less Effort

Natal says job hunters may not be making full effort in their job hunt, which is reflected in their interviews and their approach to applications.

They may be "resume spamming," she says, on LinkedIn. She estimates that "95%" of applicants "aren't even close to qualified."

Interview the Company

On the other hand, Creely offers some condolence to disheartened workers, suggesting that this is a way to filter out bad employers, rather than the other way around.

He says that companies that do not see the potential in laid off workers are "not companies or leaders that I would want to work for anyway."

Economic Uncertainty Fuels Cautious Hiring Practices

The tech industry faces economic headwinds in 2023. Many companies have implemented hiring freezes or slowdowns.

This cautious approach extends to perceptions of laid-off workers. The result is a more competitive and challenging job market for affected employees.

Diversity and Inclusion Efforts Potentially Undermined

The bias against laid-off workers may impact diversity efforts. Layoffs can disproportionately affect certain demographic groups.

Shunning these candidates could reduce diversity in hiring pools. This trend potentially undermines tech companies' commitments to inclusivity.

Legal Implications of Discriminatory Hiring Practices

Rejecting candidates solely based on layoff status raises legal concerns. Such practices may violate equal employment opportunity laws.

Companies risk legal action if bias is proven. HR departments must carefully navigate these complex hiring issues.

Strategies for Overcoming the "Damaged Goods" Stigma

Laid-off workers are adopting strategies to combat bias. Many focus on highlighting specific achievements and skills.

Networking and personal branding become crucial in job searches. Some candidates are also exploring opportunities in adjacent industries.

Call for Industry-Wide Change in Hiring Attitudes

Experts urge a shift in perspective on laid-off workers. They advocate for skills-based hiring practices over employment history. I

Industry leaders are encouraged to speak out against bias. A more inclusive approach could benefit both companies and job seekers in the long run.