Cut Hours, Not Heads
The current economic downturn provides an opportunity to streamline organizations and reposition them for the future. Downsizing is likely to be a component of any related effort. In doing so, the driving force in decision making should be what critical skills and knowledge will be needed in the future -- in what relative quantities and at what levels.
Therefore, downsizing should be driven by skills and knowledge and succession planning considerations, and not seniority. Employees need to engage with their employees and their representatives in order to consider options, and prevent counter-productive speculation that can undermine employee morale. Sometimes, it is better to cut back on employee hours than reduce headcount, especially if the positions or employees involved are critical to the entity's future success.
Posted by: n_mcguire | February 10, 2009 10:25 AM
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