Daubenspeck and Associates: Binge and Purge Search and Selection

In a volatile global economy, prompt and restorative action is needed. The method used by companies to achieve restoration is often through cost-cutting. As a significant percentage of operating costs lie in staff, companies often react with layoffs. When the economy rebounds, the organization will increase employment and resume their recruiting efforts. A method Daubenspeck and Associates’ Ken Daubenspeck coined ‘binge and purge search and selection’.

While indiscriminant layoffs can benefit a company’s quarterly reports in the short run, the loss of skilled workers can have negative long-term effects on companies. The negative effects that indiscriminant layoffs can have are also likely in the opposite case—when organizations engage in binge hiring. In these circumstances, the role of search and selection is minimal; the focus is placed upon simply filling positions. The potential effects on culture, employee loyalty, service levels, strategic initiatives, mid-level leadership, and overall productivity are not fully assessed. Thus employers are left unstable and the vicious cycle begins again.

The full report is published on Daubenspeck and Associates’ website. Read the full report.