Cost of Treating Human Capital as a Commodity

In today's start-up and hyper competitive landscape, human capital is being increasingly treated like a commodity, hired en masse to fuel rapid growth and then quickly discarded when new ventures or markets do not deliver as expected. This practice, often a result of inadequate strategic planning, has significant repercussions for employees, who face sudden job loss and financial instability, impacting their livelihoods in an era of fixed expenses such as EMIs, rent, and education fees. This also leads to a significant erosion to employer branding which hampers getting the right talent the next time these organizations venture in the same region with a different market proposition. Mass layoffs are frequently a byproduct of rushed expansions that lack thorough market analysis and piloting. Without a solid foundation, scaling efforts are more prone to failure, leading to layoffs that are not just a financial setback for employees but also a loss of morale and productivity for companies. At Talent and Skills Labs, we have experienced the consequences of these abrupt decisions first-hand, including a situation where we were asked to lay off 500 employees in a single day. This event underscored the importance of a thoughtful approach to scaling. Since then, we have honed our expertise in advising clients on strategic growth, ensuring expansions are sustainable and aligned with long-term goals. Our Approach Includes: Conducting Strategic Pilots: Before large-scale hiring, we recommend running small-scale pilots to gauge viability and reduce risks. Data-Driven Decisions: Utilizing data to inform growth strategies ensures that scaling is deliberate and sustainable. Gradual Scaling: A measured approach to expansion allows for adjustments and minimizes the risk of over commitment and layoffs. Geographical Analysis: Assessing regional opportunities ensures that scaling is tailored and effective. By adopting a more strategic approach, companies can grow sustainably, avoid the pitfalls of mass layoffs, and build resilient teams that contribute to long-term success.