I jumped the gun in my post yesterday “Downsizing Without Layoffs-Case in Point: Toyota (Japan).”
SHRM’s (Society for Human Resource Management) HR News (restricted access) had in their news list this item:
Employers Discover Downside of Layoffs
Organizations are discovering that [tag]layoffs[/tag] have many unforeseen and unwanted side effects, such as increased [tag]turnover[/tag] among valued employees.
From companies surveyed Oct. 30, 2008, they came up with this list of tactics used to deal with workforce costs besides layoffs (emphasis added):
- Attrition (72 percent).
- Hiring freeze (48 percent).
- Not renewing contracts with existing contract/temporary/contingent workers (21 percent).
- Reducing employee work hours (17 percent).
- Hiring more contract/temporary/contingent workers (12 percent).
- Retraining employees for new positions in the organization (10 percent).
- Reducing the workweek for the entire organization (9 percent).
- Shutting down the business for short periods of time (7 percent).
- Offering early retirement (6 percent).
- Offering job sharing (5 percent).
- Reducing salaries (5 percent).
- Freezing salaries (3 percent).
- Reducing or eliminating overtime (3 percent)
I still stand by my point: According to this, less than one in five (realistically, about one in ten) companies uses some real alternative measures to deal with costs.
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