This is a weekly roundup of the latest in HR news.
This first edition of HR News Roundup covers the headlines during the week of April 3, 2023, and it includes briefs on GM’s buyouts, layoffs at McDonald’s and Apple, Vimeo’s CEO contemplating Gen Z’s positive influence on the workplace, and PepsiCo’s CHRO explaining why his organization churns out more CEOs than others.
GM Avoids Layoffs with a Buyout Program
Any HR leaders trying to avoid layoffs in an economic downturn that could swiftly become a recession, should read the news about General Motors (GM). Recently, company leaders announced a Voluntary Separation Program (VSP), which gave about 58,000 employees two weeks to decide if they wanted to leave the company of their own volition.
They will get one-month pay for every year they’ve spent at GM (up to 12 months), COBRA health coverage, prorated team performance bonuses, and outplacement services, according to Yahoo! The article breaks down the investment by the numbers. Many news organizations have reported that around 5,000 employees signed up for VSP. As a result, GM has said it will not conduct involuntary layoffs at this time.
REPORT: State of HR
Layoffs at McDonald’s and Apple
As one might imagine, business thought leaders are dissecting McDonald’s layoffs to better understand why a company that has experienced increased sales would commit to layoffs. NPR reports that one of the major problems has been inflation, which led McDonald’s to raise prices. Lower-income customers are coming more frequently to purchase fast food, but they are spending less in this economic climate. Frontline workers are hard to hire and retain at the moment, so the organization plans to lay off corporate workers, which will negatively impact small business owners of the franchises. The layoffs will number in the hundreds.
Apple CEO Tim Cook famously talked about a no layoffs policy. However, he has had to backtrack on that idea. Yahoo! Finance published a Fortune piece and others are reporting that Apple is laying off those in its development and preservation teams, the corporate retail division that oversees the maintenance and construction of Apple stores. The company is telling these employees to reapply for similar positions. If they don’t, their job will be eliminated. They will receive up to four months of severance pay. Until now, Apple had avoided the layoffs of other tech companies, but a slowdown in demand for devices is the probable cause.
Vimeo CEO Finds the Positive in Gen Z
Human Resources professionals are trying to better understand Gen Z, the group of workers born between 1997 and 2012. As they recently entered the workforce, some have lamented that they are lazy and entitled, a common refrain about younger workers. However, Vimeo CEO Anjali Sud is singing their praises. CNBC reports that she outlined three ways they have positively impacted the workplace. Specifically, she says Gen Z:
- Embraces the work-life blend, so that the two worlds intersect and collide as opposed to aiming for work-life balance, which separates the two
- Look for purpose and meaning in their work and encourage others to do the same
- Make flexibility a priority
PepsiCo CHRO Boasts about Leadership Development
Fortune talked to PepsiCo Chief Human Resources Officer (CHRO) Ronald Schellekens about what is known in the industry as the company’s Talent Academy. PepsiCo can boast that 16 Fortune 500 CEOs have some sort of pedigree that traces back to the company. Schellekens attributes the success to the strong leadership development program in which managers seek and identify “high-potential persons.” Then, they test them to see if they rise to challenges and can face adversity.
Schellekens explains that the company must hire 2,000 graduates per year to ensure there is always an internal pipeline of developing leaders, and he shares that the organization refers to those with “high-potential” as corporate assets. Anyone looking to develop a strong leadership development program can read this interview.
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