Big-name companies are letting employees go for small reasons. “ Sneaky layoffs” are when companies use simple policy violations as the basis for career-altering decisions. From time to time, everyone breaks a company policy at work. However, some employers are cracking down on enforcement – using minor infractions as a reason for dismissal. Firing employees for abuse of privilege or “small sins” is a growing trend, pointing towards what some are calling sneaky layoffs. For example, EY – the accounting and consulting firm with nearly 400,000 employees worldwide – dismissed workers who were caught watching multiple training videos at the same time. At Facebook parent Meta, employees were fired for spending a $25 meal allowance on non-food items. Considering that Meta is TikTok famous for providing headphones, mice and keyboards inside free vending machines, this policy seems out of character. Or is it?
Abuse of Privilege or Use of Privilege? Inside Sneaky Layoffs
Matt Tedesco told the Daily Mail that he was let go from Tedesco, along with about a dozen colleagues, for buying groceries with meal stipends. While you may be wondering, “aren’t groceries food?”, Tedesco moved to another role at Hearst Media. He tells the Microsoft Network, “It’s hard to get a job right now – it took me months.” His experience is a cautionary tale for those committing small sins around perks and privilege: “From an employee standpoint, my takeaway is don’t abuse any privilege because it’s not worth the risk,” he says. It seems the employee-employer power struggle is tilting in the company’s favor, especially for those using strict enforcement to cut headcount.
Companies are “trying to make an example of behavior they think is inappropriate,” according to Jennifer Dulski in the Wall Street Journal. Dulski is CEO of Rising Team, an HR software company. She says that some companies are just weeding out the bad apples and over-hires. Many companies are still right-sizing after the post-pandemic hiring blitz. Simple violations can be the start of sneaky layoffs, giving bosses a reason to reduce headcount and payroll. At some employers, a small abuse of policy can be met with strict retribution – sending a message to fellow employees regarding what will and won’t be tolerated.
How to Avoid Sneaky Layoffs for Policy Violations
When it comes to making sure your career is secure, it’s best not to bump up against company policy. Here are three ways to reduce risk, especially in a tight job market:
- Read the Rulebook: are you sure you know your company policies? Your HR team does, and ignorance of the rules is not going to be a good excuse if you are called onto the carpet. Familiarize yourself with what your company expects, especially around perks, so that you don’t cross a line.
- Save Your Receipts: keep track of what you spend, on the company’s behalf. When in doubt about an expense, it’s always a good idea to ask your supervisor – before you spend the money. In the case of expenses, it’s easier to ask permission than to beg for forgiveness.
- Read the Tea Leaves Around Sneaky Layoffs: if times are tight at your company, that could mean that they are tightening their rules. Enforcement increases when revenue decreases. Reading the tea leaves means being aware of more than just company policies – be cognizant of the company’s financials as well.
In October, the US economy added just 12,000 jobs – the slowest growth since the pandemic, according to financial firm, JP Morgan. The US Chamber of Commerce says that there are still 8.2 million job openings nationwide, pointing to a widening labor shortage. So why the sneaky layoffs for small sins? Seems that some companies are looking for ways to reduce payroll, not add to it. Surprisingly, the National Federation of Independent Businesses says that 40% of business owners report job openings that they can not fill. “Small business owners are feeling more uncertain than ever. Uncertainty makes owners hesitant to invest in capital spending and inventory, especially as inflation and financing costs continue to put pressure on their bottom lines. Although some hope lies ahead in the holiday sales season, many Main Street owners are left questioning whether future business conditions will improve,” according to NFIB Chief Economist, Bill Dunkelberg. In an uncertain labor market, it’s a troubling time to be dismissed for small sins – and a privilege, it seems, to have a job.