Understanding Layoff Priorities: Why Recent Hires Face Higher Risks

Amid the slew of recent layoff headlines, a question lingers: when a company cuts jobs, who is first on the chopping block? If you’re a new hire, you’re more likely to be laid off—a Harvard expert’s No. 1 way to rebound.

Industry Data on Job Security

According to new data from BambooHR, a human resources software company, 65% of HR professionals typically approach layoffs by eliminating newly hired workers first. The report surveyed over 1,500 employees and human resource professionals from December 19 to January 4. Based on these findings, the likelihood of job loss varies significantly:

• Overall, it found that employees believe that in a wave of job cuts, the likelihood of getting laid off is 62% for recent hires and 20% for longstanding employees.
• The report also says that over half of the employees surveyed want to know why employers decide to lay off certain roles.

The Role of Transparency

That need for transparency about layoff decisions is part of the reason many employers have historically decided to let go more recent hires first, according to Sandra Sucher, a professor at Harvard Business School who studies layoffs. As she explained, “It was something that was relatively easy to explain, which matters when it comes to involuntary terminations,” Sucher tells CNBC Make It. This strategy is often utilized “Because people need and want to have an explanation.”