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

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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 (...)

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 (...)


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 (...)

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