Crisis! What Alternatives can HR offer for Downsizing or Reducing Payroll Salaries?

Human Resource Management Roles
Knowledge Center

Best Practices

Sign up

Piero Rodrigo Casafranca Abrill
Analyst, Peru

Crisis! What Alternatives can HR offer for Downsizing or Reducing Payroll Salaries?

In times of crisis, companies make difficult HR decisions and often choose between downsizing or reducing payroll salaries, but really what is the best option? Are there other alternatives that can help a company's economic situation?

  David Wilson
Manager, Canada
 

Options for HR Reductions

You need to look at what the US Government calls a Reduction In Force (RIF). Options include:
- Buyoffs and early retirement (e.g. voluntary downsizing),
- Attrition (e.g. hiring freeze),
- Layoffs and dismissals (e.g. forced downsizing),
- Salary reductions (e.g. rollbacks),
- Elimination of vacancies,
- Reduced hours of work (e.g. 4 day work week versus 5 days),
- Reduction in benefits (e.g. lower costs),
- Transfers to vacancies to be retained,
- Unpaid leave of absence,
- Reduced vacations,
- No temporary staff
- No backfill of permanent staff.
This may not be a complete list, but they are options.
Layoffs should (in my opinion) be the last option. Please note, the specific terms used may vary from country to country.

  Leena Bissoonauth
Student (University), Mauritius
 

Alternate Options for Reduction: Multiskilling

I agree that layoffs are the last option, because (...)

  SETIONO WINARDI
Business Consultant, Indonesia
 

Options Solution for your Problem

Even if downsizing is the only remaining option fo (...)

  F. Mouche
 

HR Reductions and Sustainability

Perfectly right, David, and when eventually you ar (...)

  Ashish Verma
HR Consultant, India
 

Decisions HR Take During Tough Times

There are 2 schools of thought during difficult ti (...)

  OPIO SAM
 

Multi Skilling in the Health Service Sector

@Leena Bissoonauth : I agree with you. In my organ (...)

  Jaymala dubey
Student (MBA), India
 

Useful HR Options During Recession and Crisis

@Leena Bissoonauth : I agree multi skilling is bet (...)

  Alex Joe Nona
HR Consultant, Papua New Guinea
 

Why Downsizing is not a Good Solution During Crisis

I agree with David that during difficult economic (...)

  Bill Maynard, SPHR
 

Resource Action - do your Homework First

What is the crisis? Prior to determining what HR a (...)

Participate and leave a comment
Exchanging your ideas stimulates your personal and professional development. And you can help other people! Please motivate your point of view. You can still edit your comment for 3 hours.

Start a new forum topic

 

More on Human Resource Management Roles
Summary
Forum
🔥The HR Manager's Role in the Post Covid-19 Period
Responsibilities of a HR Manager
Dutch Strategic HRM Process Model
Efficiency Factors of Human Resource Management
Competitive Advantage of HR
Aligning the HR Strategy with Overall Strategy
General and Specific HR Strategies
How Should HR Deal with International Differences in Payments for Jobs?
Should HR Be Split Up?
Happy New Year 2020
How can HR Support Employees with Mental Health Issues?
Seasons Greetings for 2019
Celebrating a Diverse Holiday Season
Managers and Positions Excluded from Union Jobs
Role of Human Resource Management in Public Sector
The Impact of HR Self-service Models on HRM Roles
European and American Model of Managing Human Resources
Strategic Importance of Human Resources Planning?
Differing HR Practices for Standard and Contingent Employees
What is the HR Matrix?
Best Practices
Role Human Resource Management in Globalisation
Crisis! What Alternatives can HR offer for Downsizing or Reducing Payroll Salaries?
HR Strategy: Getting Everyone On-Board
Is HR Really Viewed as a Strategic Partner?
Steps in Developing HRM Strategy
Workforce Model of Organizational Development
HR 2020 - a New Vision
The Integrative Model of Human Resource Strategy Formulation
What is Entrepreneurial HR?
What is the Most Important HRM Role? Why?
The Role of the Chief Human Resources Officer in the Boardroom
What Parameters Determine the Best Organizational Model for HR?
Employee Grievances Redressal
Key Sections of an Employee Handbook
Most Comprehensive Human Resource Management Model
Recruitment - Attracting Best Applicants
Special Interest Group
David Wilson
Manager
Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Human Resource Management Roles
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 13-6-2021. All names of their owners.