4 ways to eliminate workforce reduction in your organization

Let’s face it: Mass layoff headlines keep?piling up, and workers are understandably spooked. The labor market has been tight for the majority of the pandemic, with millions more job openings than people available to fill them, and recruiters going to the extreme to court high-earning?workers in tech, finance and real estate.

“Loud layoffs” in tech have a disproportionate chilling effect, says ZipRecruiter chief economist Julia Pollak, because they’re happening at household name-companies that just experienced rapid growth. Further, it’s a “bellwether industry that shapes our moods, and a slowdown there is causing job-seekers more broadly to worry jobs are becoming less available.”

Reference:

Even though you can’t change the events that force you to reduce the workforce, you still can choose strategies to sustain your employer brand and cause minimal stress to employees.

In this guide, I gathered four simple ways to eliminate workforce reductions in an organization.

What is a workforce reduction?

Workforce reduction, also known as downsizing, restructuring, or reorganizing, may occur when an employer terminates a large number of employees in an effort to reduce business expenses. Although a reduction in the workforce event will typically involve permanently laying off certain employees, there are some situations wherein it may involve the following alternatives instead:

• Reducing the number of work hours available for all workers employed by a company;
• Slashing annual holiday bonuses and freezing promotions or salary hikes;
• Shifting employee responsibilities to reduce the number of job positions;
• Eliminating or getting rid of supplemental payments for overtime (if allowed by law);
• Implementing mandatory?furlough or layoffs.
• Both terms refer to a type of absence or leave from work. Generally speaking, however, a worker who is furloughed will usually be permitted to return to their jobs, while a worker who is permanently laid off will not be able to return to their position unless they were only temporarily laid off. Of course, this will depend on the circumstances surrounding a worker’s discharge.

In addition, since downsizing and reduction in the workforce events tend to impact a large number of workers, employers would be wise to exercise caution and foresight when planning to downsize their business.

4 Ways to eliminate workforce reduction in an organization:

Step 1: Workforce Planning

A key integral area of the HR strategy is workforce strategy which should be used to achieve the benchmarking standards and become an 'employer of choice'. According to CIPD workforce planning refers to the generating information and analyzing it in order to meet the demand for the talent and skills by translating it is series of actions. This is to develop and build the existing workforce to meet the surging demand (Workforce planning, 2019). The derivate of the term Workforce planning can be defined as: Right labour in the place; Right time; Right skill; Right time to deliver; Right future fit; Right attitude

CIPD recommends the best principles of effective workforce as: Strategy Setting?

According to CIPD workforce planning can be further broken down into two categories: ‘hard’ mostly involves planning using numerical data and statistics while ‘soft’ refers to developing the strategic framework (CIPD, 2019).

There are multiple tools that can be used for the workforce management?

1. Strategy Mapping

The method of aligning defining the planning and communicating the overall business direction and strategy. easy templates to use! -->

2. Scenario Planning

The process of anticipating the future possibilities and change of events that can occur, analyzing them of their severity and impact on the business (Vulpen,2019). More about the tool -- >

And one of my favorites:

3. Gap Analysis

Gap analysis provides an insight towards the improvement and needs for resources. This helps in assessing company HR goals and reflects the discrepancy between existing talent and skills that are available in a company's workforce along with its needs (Kokemuller, 2019).

Please feel free to download and use the template

Additional example of tools include – Compensation and benefit analysis; organizational benchmarking.?

Step 2: Reducing fringe benefits

To start with should be with the C-suite & leadership

Fringe benefits?are additions to compensation that companies give their employees. Some fringe benefits are given universally to all employees of a company while others may be offered only to those at executive levels. Some benefits are awarded to compensate employees for costs related to their work while others are geared to general job satisfaction.

Understand what is fringe benefits?

Step 3: Agile HRM Decisions & Policies

3.1 Restricting/reducing external recruitment

Where possible, employers should aim to avoid replacing employees who exit the business.

Employers should consider whether they can fill any internal vacancies by redistributing work amongst existing staff or by accepting internal applicants, before advertising externally.

3.2 Restricting/banning overtime

This may be an effective way to reduce costs, especially if there is no business requirement for overtime. However, banning or restricting overtime would need to be communicated carefully to employees, and employers would need to explain that it is a means of avoiding compulsory redundancies. Employers will need to take particular care when dealing with employees who have come to rely on the additional pay they receive from working overtime.

3.3 Redeployment/retraining

If one area of the business is busier than another, it may be possible to retrain an employee with transferable skills to take up a new role on a temporary or permanent basis. It may also be possible to carry out a restructure without the need for any job losses, by redefining existing roles in line with work demands. Any significant changes will need to be agreed in writing with the relevant employee. Any redeployed employees will also need to be given training to ensure that they are properly equipped to perform the new role.

3.4 Job-shares

Employers can request volunteers for job-shares. This arrangement enables two (or more) employees to split a full-time job between them, whilst entering into an agreement regarding hours/days of work and split of role/duties. This will evidently cut costs for the business without letting anyone go.

3.5 Voluntary sabbaticals/career breaks/secondments

Arranging unpaid sabbaticals/career breaks can be a great way to save on the costs of salary for a fixed period of time, whilst retaining valuable staff and giving them the opportunity to do something for themselves such as study, travel or voluntary work.

Similarly, internal or client secondments can work well to either train an employee in a certain area, or provide a specific service to a client. This may help to consolidate client relations and/or develop the employee’s knowledge/skills, ultimately benefiting the employer’s business when the employee returns to their original role.

3.6 Flexible working requests – Reducing hours/days worked

Employees can be invited to make flexible working requests with a view to reducing their hours or days of work. Or the employer can consider introducing a reduction in hours or days worked for a certain group of employees on a temporary or permanent basis. Employee consent would need to be obtained, in order to mitigate any risk of breach of contract and/or constructive dismissal claims.

3.7 Early retirement

Offering early retirement could result in vacancies becoming available within the business, which could then be taken up by employees who might have otherwise been at risk of redundancy.

Step 4: Succession and Career Development Plan

Succession and development plan help in building, develop attributes, abilities and experience to fill in the critical senior roles for long and short term (Avado Learning , 2019).

Use a PDP - Personal/ Professional Development Plan to help guide through succession and career development planning'

example: please feel free to use the template.

Succession Planning - RIDSIM Method

The strategy of defining, identifying and grooming future

called succession planning. This is also in order to forecast and empower the organization in managing unavoidable circumstances as for example - retirement, being fired or resignation and ensuring the smooth function of the business (Robert Half, 2018).

This often overlooked by organizations but a planned set up is always helpful in stream lining the functionality of the business. The following sample derived model helps in defining the steps of succession planning (fig 4) (Refer appendix 2.B)

leadership resources across the organization in different verticals is

1. Role Identification

2. Identify the criticality of the position

3. Define a success role

4. Selection of the talent pool

5. Identify the areas of Development & Develop talent

6. Measure the progress

Career Development Plan:

This is a plan that defines the long- and short-term goals of the employees, combination with the individual's potential and strengths linked to the goals with milestones. This helps the employee achieve their goals and assist managers in recognizing the candidates increasing the scope of retaining them (Trueba, 2008)

Conclusion:

At a time where every organization is grappling with the pressure to maximize on their budgets, redundancies can often seem an easy way to cut costs. However, with a growing skills gap, the greater need for talent mobility and the increasing pressure on performance, there are more cost-effective ways to leverage your talent effectively from within.?