Last year, Meta CEO Mark Zuckerberg boldly proclaimed 2023 to be the company’s “Year of Efficiency” after a whirlwind three years in a post-pandemic business landscape. The efforts to shed roles, cut costs, and downsize expenses, in addition to maintaining innovation and improving its financial resilience, paid off: the company’s $966.60 billion market cap is edging ever-so-closer to the much-desired $1 trillion mark.
A major foundational cornerstone to Meta’s year of efficiency wasn’t just a commitment to driving down expenses and improving spend management; the social media giant shed over 20,000 jobs in 2023 alone in a sector (technology) that saw the loss of over 262,000 positions in the calendar year (and nearly 11,000 in 2024 thus far). While the tech market as a whole hit a rough patch due to less-than-favorable economic conditions and retribution from pandemic-era over-hiring, 2024 promises to be a positive, exciting, and, more importantly, something year for those in the tech world.
Companies across all sectors may consider Meta’s 2023 efforts as some sort of blueprint for how to achieve their goals: cut costs, slash jobs, maintain innovation. Seems easy, right? Nope. The push for “AI everything!” means that businesses cannot just slice-and-dice their workforce at-will as a cost-cutting measure; the skillsets required to leverage AI models, integrate AI technology, and actually use these tools are not just waiting in the backyard.
There’s nothing inherently wrong with wanting to downsize and make operations more efficient; the issue that one of the world’s largest companies touted job reductions as an anchor for their push for efficiency and the danger is that copycat enterprises will believe that they could easily do the same.
For businesses that truly want to buy into 2024 as a “year of efficiency,” there are much more effective means of doing so without disrupting the fabric of their talent base, nor trying to mimic a unicorn-like company that has never truly struggled like so many other organizations. Here’s how contemporary businesses can push a “year of efficiency” agenda in more streamlined, effective, and innovative manner:
(And yes, we get it: layoffs and workforce-downsizing are an accepted aspect of the modern business world and are sometimes necessary when enterprises are faced with economic challenges or other issues that threaten their survival. The point of this article is not to say that companies should avoid layoffs at all costs, but rather take a holistic view of their operations, optimize their application of skillsets, and prioritize innovation.)
- Align AI wants with AI needs and develop a long-term skills roadmap that supports this strategy. We all know the deal by now: artificial intelligence is a requirement in 2024 (and beyond). The trick here, though, is to figure out exactly how to leverage AI without sacrificing resources, overhead, and sanity (and talent!); many companies today are unfortunately prioritizing AI in the wrong manner by over-dedicating at the expense of other, just-as-critical enterprise initiatives. Businesses must configure their artificial intelligence strategy, understand the skills requirements needed to execute on it, and put the plan in motion with the help of talent acquisition leaders and the human capital team. Specific skillsets, such as data management, applied science, and generative AI, should be centerpieces of a skills-based roadmap from which executive leaders can prioritize from a resource perspective.
- Optimize the utilization of the extended workforce. There’s a reason why the contingent workforce has nearly eclipsed half of the average company’s total talent base: the inherent cost control, agility, flexibility, and skillsets of the extended workforce provide organizations with a new level of expertise in a rapidly-evolving world. In navigating this paradigm shift, organizations must not only recognize the strategic advantages embedded in the extended workforce but also cultivate a dynamic ecosystem that harnesses the diverse talents and perspectives within it. Innovative programs and solutions, such as direct sourcing, digital staffing, and the continued power of progressive workforce management automation, are key levers in maximizing the efficiency gains driven from the utilization of non-employee talent.
- Prioritize talent retention initiatives. While we’re very much not in a “Great Resignation” world anymore, there are still many opportunities for talented workers that feel underappreciated, underpaid, and out-of-tune with company or workplace culture to bring their expertise to other organizations. “Skillset bleed” is a real phenomenon in enterprises that do little to improve morale, lack humanity, and fail to lead with empathy and understanding. The cost to replace a highly-skilled worker, especially in light of the new focus on adopting and implementing AI, pales in comparison to the outlays for ensuring top talent is comfortable, appreciated, and feels at-home in an inclusive, diverse workplace environment. Talent retention is not merely a countermeasure against the negative consequences of layoffs; it is a proactive strategy that contributes significantly to an organization’s long-term success.
- Prioritize “innovation” but balance “efficiency.” Easier said than done, I know. In an increasingly-globalized, frenetic, and volatile business arena, focusing too much on one strategy can result in doom for other critical tactics. Welcoming novel concepts, cutting-edge technologies, and innovative processes has the potential to drive an enterprise towards success, expansion, and distinctiveness. Innovation serves as a catalyst for creativity, unlocking new and exciting revenue streams, as well as positioning the company as a differentiator in crowded verticals. The trick, though, is to create a harmonious balance between being progressive and maintaining organizational effectiveness in regards to costs, expenses, and resources. Specific strategies, such as “customer-centric innovation,” can help businesses home in on what really matters for revenue improvement, while focusing on internal process and workforce optimization will augment the pathways towards efficiency.
