Which of the following is NOT a potential problem with headcount reductions?
A)Regulatory requirements make it difficult to make targeted cuts.
B)Workforce reductions, especially if not handled well, can harm employee relations.
C)Organizations that make greater involuntary workforce reductions also experience greater voluntary turnover.
D)RIFs are very costly in tangible terms in the long run due to decreases in unemployment insurance tax rate.

Question

Quizplus · Accepted Answer

RIFs (reductions in force) are actually likely to increase unemployment insurance tax rates, rather than decrease them. This is because when employees are laid off, they may be eligible for unemployment benefits, which are funded by employers through taxes. Therefore, headcount reductions can actually be costly in tangible terms.

Which of the Following Is NOT a Potential Problem with Headcount