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

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Human Resource Management Roles > Best Practices > Crisis! What Alternatives can HR offer for Downsizing or Reducing Payroll Salaries?

Crisis! What Alternatives can HR offer for Downsizing or Reducing Payroll Salaries?
Piero Rodrigo Casafranca Abrill, Analyst, Peru, Member
In times of crisis, companies make difficult HR decisions and often choose between or reducing payroll salaries, but really what is the best option? Are there other alternatives that can help a company's economic situation? (...) Read more? Sign up for free
 

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Options for HR Reductions
David Wilson, Manager, Canada, SIG Leader
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.
 

 
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Useful HR Options During Recession and Crisis
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Why Downsizing is not a Good Solution During Crisis
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David Wilson
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