You are the HR manager of a company experiencing the loss of market share and profits are declining. The CEO would like you to recommend a strategy for reducing staff over a longer time frame and which generally presents the least amount of problems. Which of the following would you recommend?
A) Introducing a reduced work week
B) Laying off employees
C) Offering attractive buyout packages
D) Downsizing through attrition
E) Offering attractive early-retirement packages

Question

Quizplus · Accepted Answer

Downsizing through attrition presents the least amount of problems as it involves not replacing staff as they leave or retire, rather than actively laying off currently employed individuals. This method allows for a more natural reduction of staff size over a longer time frame, which can lessen the negative impact on employee morale and avoid the legal and financial issues that come with layoffs. Introducing a reduced work week or offering early-retirement packages may not be sufficient in reducing staff size and may not be feasible for all employees, while laying off employees and offering attractive buyout packages can have negative effects on morale and reputation.

You Are the HR Manager of a Company Experiencing the Loss