THREE STAGES OF PLANNING FOR A REDUCTION IN FORCE
With year-end on the horizon, businesses closely assess performance relative to their financial objectives. Workforce restructurings and staff reductions may be a knock-down effect of such assessments, to enable a business to maximize efficiencies and reduce costs. Assume ABC Co. is undergoing just such an assessment.
Bernice, the Head of Sales, plans to consolidate her teams by eliminating all district sales manager roles and designating up to three sales supervisors in each region, who will perform some local management functions in addition to their regular sales duties. Bernice’s plan will impact 10 employees, in six different states.
Lucas, the Head of Production, plans to cut 15 junior staff roles by automating and consolidating functions. In selecting among the employees whose functions are not directly impacted by automation, Lucas is considering performance, cross-training, attitude, flexibility in scheduling/overtime, and special skills.