By Charles Lentz, Esq.
If your organization isn’t already planning or implementing measures to cut labor costs, it may soon have to. News that the United States has been in a recession since December 2007 suggests that HR professionals should prepare to reduce the labor burden—if only as a contingency plan.
Frequently—and too simply—the decision comes down to which employees to lay off. But, reductions in force—RIFs—are not the only mechanism for achieving labor-cost savings. It pays to consider alternative approaches before deciding to begin layoffs or voluntary-exit incentive programs.
The pros and cons of RIFs
Whether voluntary or involuntary, workforce reductions have positive attributes. RIFs are relatively easy to conceptualize, and your employees may even expect one is coming. RIF decisions can be made quickly and the results are predictable—the cost savings are easy to calculate. In some circumstances, a tempo...(register to read more)