Mental Health, SDGs & Workplace: Navigating Layoffs and Building a Sustainable Future
The importance of the Sustainable Development Goals (SDG) in fostering healthy work environments cannot be overstated. They are vital for creating a culture that respects individual differences and ensures equal access to opportunities. However, the recent wave of large-scale layoffs, particularly the 149K in the technology industry, brings the genuine commitment of companies to Environmental Social Governance (ESG) values and SDG into question. This article delves into the intricate connection layoffs have between SDG, ESG, and Mental Health and urges readers to advocate for change and hold decision-makers accountable for finding innovative solutions, reversing the downward mental health spiral effects of job loss.
The Paradox of Tech Companies' Priorities and the Need for a Holistic Approach
Tech companies often portray themselves as champions of ESG values (e.g., DEI, Carbon Emissions) and SDG. However, their continuous practice of laying off employees to manage costs raises concerns about their genuine commitment to these values. By focusing on immediate cost-cutting measures (i.e., layoffs), companies are inadvertently contributing to a range of issues, including increasing the state of mental health in 21% of America, financial challenges preventing accessibility to treatments for themselves, their families, and a pause and diversion of resources from SDG and planetary health efforts.
Moreover, sudden drastic layoffs are impacting employee trust in some of the most sought-after employers, as A PwC survey explains, eroding the reputation of tech platforms for years.
Leading to the question: Have tech companies indeed been employee driven? Or has shareholder value always been driven by short-term profit over people?
The large-scale layoffs in tech companies propagate a narrative prioritizing profits over people and the planet. This message undermines employees, customers, and society's trust in these organizations, making it increasingly difficult for companies to demonstrate their genuine commitment to ESG values. As decision-makers in the C-suite, boardrooms, and policymakers continue to endorse such actions, they risk jeopardizing their organizations' long-term success and reputation.
Hidden Consequences: The Ripple Effects of Layoffs on ESG Commitments and Society
As layoffs disrupt employees' lives, their impacts extend beyond the affected individuals, influencing communities and the environment. The impact of job loss affects not only the individual but their families and loved ones. Many of today's tenured tech workers laid off have been on H-1b work visas, therefore, pressured to find new sponsored employment within 60 days or forced to leave the country. Those who have established themselves with families and children are now forced to compete with thousands of H-b1 visa holders for low-sponsored employment vacancies or face uprooting or splitting families for decisions beyond their control. The short-sighted focus on cost reduction undermines companies' ESG commitments, as resources that could be directed towards sustainability projects or community initiatives are funneled into terminal severance and benefits packages and community social and economic disruptions.
In the climate change context, the global crisis's urgency demands immediate action. The time, energy, and resources required to find new employment and, for many, prevent deportation are detracting from continued efforts and progress toward SDG's mitigation efforts. The resulting disengagement exacerbates the crisis, as the global community needs widespread participation to combat the degradation of planetary health.
The "Paralysis Paradox" and Redeployment of Human Capital
The "Paralysis Paradox" describes the prevailing sense of inertia that prevents individuals and organizations from making impactful changes. It is particularly relevant in large-scale layoffs, as decision-makers are defaulting to conventional cost-cutting measures without generating alternative strategies that can prevent further damaging the mental health and well-being of employees, families, and local communities.
The Paradox discusses the redeployment of human capital, an alternative strategy that involves reallocating employees to different roles within or outside the organization. Rather than resorting to layoffs, why not reallocate their invested human capital to startups tackling SDGs and driving social change for all? Today numerous startups are tackling SDG, and aside from seed funding, they need specialized skilled individuals to drive solutions for positive change in planetary health. This approach not only preserves jobs but also enables companies to retain valuable talent with knowledge, build diverse and inclusive communities, and continue skill development that can prepare their workforce for new roles. The redeployment of human capital allows companies to demonstrate their continued commitment to prioritizing people and the planet over profits. By reallocating resources towards pressing ESG issues, tech companies can preserve their employees' mental health, well-being, and brand trust and make tangible progress towards SDGs. This strategy sends a powerful message to stakeholders that the company is genuinely dedicated to its ESG values and is willing to take bold, innovative steps to uphold them.
Recommendations for Tech Companies to Balance Priorities and Foster Change
- Reevaluate the necessity of layoffs as a cost-cutting measure and consider alternative strategies, such as the redeployment of human capital, to address business needs without compromising employees' well-being and trust.
- Enhance transparency in decision-making processes, ensuring employees and stakeholders understand the rationale behind critical decisions, including layoffs.
- Implement fair and equitable layoff processes, providing employees with adequate notice, severance pay, and support for finding new employment opportunities, particularly those requiring sponsorships.
- Invest in retraining and reskilling programs for employees, enabling them to transition to new roles within the company or prepare for jobs in other industries.
- Collaborate with governments, non-profits, and other organizations to address layoffs' broader social and environmental impacts on communities and planetary health.
A Call to Action: Advocating for Change
I invite the readers of this article to reflect and ponder the cause and effects of the continuous layoffs. By raising awareness of the profound implications of layoffs on employees, communities, and the planet, individuals can spark conversations and challenge the status quo. Moreover, to advocate for change and hold decision-makers in the C-suite, boardrooms, and policy-making positions accountable for their actions.
As consumers, employees, residents, and citizens, we all have a role in demanding transparency and accountability from organizations. By voicing our concerns and urging companies to prioritize people, and the planet over profits, we can foster a more equitable and sustainable future for all.