In fast-evolving industries like payments and fintech, even the best employees can unexpectedly lose their jobs. The reasons behind these terminations can be complex and often surprising. Understanding why this happens provides valuable lessons for both job seekers and employers. Dexterous, a leader in payments recruiting, sheds light on why even top performers may face termination.
Leadership Changes: A Shift in Expectations
A change in management can drastically alter the dynamics within a company. Even employees who were once highly valued may find themselves struggling to adjust to new expectations.
New Leadership Priorities: When a new supervisor steps in, they often bring different ideas about what skills and qualities matter most. Employees who thrived under the previous leadership may no longer fit the new mold.
Seen as a Barrier: Employees closely aligned with former leadership might be seen as a hindrance to new strategies, even if they performed well in the past. This perceived misalignment can result in job loss.
Restructuring the Team: In some cases, new managers may want to assert their authority by reshaping the team. This restructuring may involve letting go of employees who were once seen as key players but no longer fit into the new vision.
For more insights on managing leadership changes, read the Harvard Business Review article on adapting to new management styles.
Ownership Changes: A New Direction
Changes in ownership or senior management can bring significant shifts in company goals, culture, and strategy. These changes often lead to the dismissal of long-standing employees.
Cultural Overhaul: A new ownership team may introduce a different corporate culture. Employees who once thrived may struggle to adapt to these changes, especially if the new culture doesn’t align with their values or work style.
Cost Reduction: New leadership may prioritize cutting costs. Higher-salaried employees, no matter how skilled, can become targets for layoffs as companies seek to save money by hiring less experienced, lower-cost talent.
Strategic Shifts: If the company changes direction, employees who excelled under the old strategy may no longer be seen as valuable. These employees may not fit the new goals, even if they previously performed at a high level.
Explore more about how company ownership changes impact employees in this article.
When Good Employees Become a Liability
Even the best employees can find themselves facing job loss due to evolving business needs, shifting job roles, or personal challenges.
Changing Job Demands: The payments and fintech industries constantly evolve. Employees who fail to adapt or learn new skills may become less valuable, even if they once excelled in their roles.
Salary Issues: Over time, employees with long tenures often command higher salaries. Companies may view these higher-paid employees as financial burdens, leading to their dismissal in favor of hiring lower-cost workers with similar skill sets.
Personal or Health Challenges: Life events, such as health issues or personal crises, can impact job performance. Employers may be forced to make difficult decisions, even when the employee has been loyal and hardworking.
Why Employers Should Look Beyond Resumes
For hiring managers, it’s important to see past the resume and consider why an employee might have been terminated. Often, employees who lost their jobs still bring valuable experience and skills to the table. Understanding the context behind their termination can reveal how they might thrive in a new role.
Job seekers who have been fired should reflect on the circumstances surrounding their termination and be prepared to explain them during the interview process. Offering a thoughtful explanation that highlights personal growth and learning can go a long way in convincing a prospective employer of your value.
Dexterous: Your Go-To Partner for Payments Recruitment
Whether you're a candidate who has been terminated or a company looking for top talent in payments and fintech, Dexterous can help. Our team of specialized recruiters understands the complexities of the industry and is dedicated to matching the right talent with the right opportunities. We provide tailored guidance to help candidates through career transitions and assist companies in making strategic hiring decisions.
Ready for your next career move? Visit Dexterous to learn how we can support your job search in the payments industry. Whether you're exploring new roles or seeking top-tier talent, reach out to us today.