HRs should be more proactive like hunters in forecasting to ensure that the firm has right number of resources. Studying the past patterns will help to know about warning signs to prevent layoffs. So, it is very important to analyze the ratio between the number of employees and revenue need to generate.
Identifying the surplus and shortage areas
Moving employees internally from one department to another where the demand and requirement is high. Identify the skills needed in the shortage area and notify the employee about the value of redeployment. Classify the employees who have high probability for transition and evaluate their performance with an assessment.
Derive a formula to increase productivity
Increase the productivity from current employee and revenue. Offering productivity incentives to employees and increasing their percentage of pay at risk. Increasing the hiring standards to attract more employees in terms of productivity. Buying new technologies to increase the efficiency and productivity.
Cutting back is better than layoff
Lowering the extra benefits and facilities can be better than layoff. Offering health insurance policies and transport facilities can be cut off during layoff season.
Offering amount to end relationship
Requesting employees to take voluntary layoffs and offering them some amount to end the relationship with the company will help to safe guard critical resources. Offering early retirement to eligible employees will be viewed as a positive sign among the remaining employees.
Lowering the pay instead of head count
Consider lowering salaries for a certain amount of time is better than layoff. This practice may lead to an anger in employee’s mind but in due course of time once the business situation is back to normal company can provide repayments in terms of incentives and bonuses.
Providing part time offers
Consider providing part time offers to consultants for certain amount of time with a decent pay. Once the business situation is back to normal many skilled employees are ready to serve for full time after knowing about the company’s growth.
Retaining the critical resources
Declining revenue will increase the probability for need of layoff. So, firms should make a ground work to retain their excellent performers. Conducting the internal job fairs, assessments, auditing pervious performances will help the company to identify their star performers and make the best effort to retain them in the company.
Coffee talk with employees regularly
Communication with an employee is very important at any point of time. Be open and honest to them. They are aware about the economic conditions and they can provide you best ideas to avoid layoff.
Implement re-position strategies
Re-position of employees from high productivity to low productivity plants to increase the targets. Offer productivity incentives to employees both at individual and team level. Advice employees to stretch for over time works during weekdays and weekends to reach the goals. Use “more with less” strategy.