Dear Fellow CiteHRians,
Attaching a short and sweet informative PPT on downsizing and other related HR activities that I came across. At the conclusion of the PPT, there are some critical thinking questionnaires attached. Would you like to get the answers?
From United Arab Emirates, Dubai
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2Attaching a short and sweet informative PPT on downsizing and other related HR activities that I came across. At the conclusion of the PPT, there are some critical thinking questionnaires attached. Would you like to get the answers?
From United Arab Emirates, Dubai
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Good one, Mita. But now the scenario is slowly changing. Companies are recruiting people at various levels in various functions and are also trying their level best to retain top talent.
Chinmay Vasavada
Executive HR
From India, Mumbai
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Chinmay Vasavada
Executive HR
From India, Mumbai
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This is an excellent presentation. company planning to down size only to reduce the cost has to understand long term losses instead of short term. regards, r.dave
From India, Mumbai
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From India, Mumbai
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Mita,
When one talks about downsizing, one always thinks about an increase in productivity. There is another dimension. If a company loses business (on a more permanent nature), it could then downsize or "rightsize" to keep the same productivity norms. Let me try and answer your questions:
1. Both. Normally, it is the managerial levels that are first trimmed until a point where there is just about enough experience and leadership. Then the direct force is looked at.
2. Most definitely yes.
3. Separation pay is totally voluntary. As per my understanding, there are no "benefits" like tax, etc., which a company gets (can someone please check and confirm this either way). It is only the reduction in the future cost of operation.
4. Talk straight. Let the employee know the true picture. Do not link it to anything else (mostly performance) ... this will keep the morale of the employee up when the job hunt starts. Answer all the questions as candidly as possible. Give them access to talk to senior management if required. Put their F&F processing on a speed course. Volunteer to give a good reference check. Respect the person ... that is the least one can do. In a nutshell, a) keep the person's morale high b) clarity of communication c) offer any other help required.
5. Both are means to reduce the workforce. Early retirement is generally offered when you are looking at trimming people in the 45-55 years range (that's where your highest salaries are). They, being close to retirement, will opt for VRS as their post-retirement benefits would not get affected, i.e., pension, or they would be given a one-time payment which would be good for them but less than what the company would have to bear if they would have to serve out the remaining years. Layoffs are done when people are in their junior to mid-range. They can get another job.
Rana
From India, Hyderabad
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When one talks about downsizing, one always thinks about an increase in productivity. There is another dimension. If a company loses business (on a more permanent nature), it could then downsize or "rightsize" to keep the same productivity norms. Let me try and answer your questions:
1. Both. Normally, it is the managerial levels that are first trimmed until a point where there is just about enough experience and leadership. Then the direct force is looked at.
2. Most definitely yes.
3. Separation pay is totally voluntary. As per my understanding, there are no "benefits" like tax, etc., which a company gets (can someone please check and confirm this either way). It is only the reduction in the future cost of operation.
4. Talk straight. Let the employee know the true picture. Do not link it to anything else (mostly performance) ... this will keep the morale of the employee up when the job hunt starts. Answer all the questions as candidly as possible. Give them access to talk to senior management if required. Put their F&F processing on a speed course. Volunteer to give a good reference check. Respect the person ... that is the least one can do. In a nutshell, a) keep the person's morale high b) clarity of communication c) offer any other help required.
5. Both are means to reduce the workforce. Early retirement is generally offered when you are looking at trimming people in the 45-55 years range (that's where your highest salaries are). They, being close to retirement, will opt for VRS as their post-retirement benefits would not get affected, i.e., pension, or they would be given a one-time payment which would be good for them but less than what the company would have to bear if they would have to serve out the remaining years. Layoffs are done when people are in their junior to mid-range. They can get another job.
Rana
From India, Hyderabad
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Hi,
This was prepared as a slideshow for my presentation on this subject as a part of my MBA final semester. I would like to thank all my professors for their guidance.
Thanks to all CiteHRians who have visited this post and found it worth going through.
From United Arab Emirates, Dubai
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This was prepared as a slideshow for my presentation on this subject as a part of my MBA final semester. I would like to thank all my professors for their guidance.
Thanks to all CiteHRians who have visited this post and found it worth going through.
From United Arab Emirates, Dubai
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