What are the alternatives to reductions in force?

Business needs to consider creative ways to design alternatives to downsizings or other reductions in force, because reductions in force are costly, devastating to both the employees affected and to the surviving work force, and generate public ill will. If there are other options, wise employers explore them.

The following common alternatives to reductions in force can be used in myriad combinations that suit the company's specific needs and accommodate the company's unique culture:

• Increasing productivity and profitability
• Management change
• Attrition
• Working longer hours, increasing business targets and/or modifying schedules
• Hiring freeze
• Redeployment/transfer based on skills
• Demotions, downgrades, transfers and/or disciplinary actions that force terminations based on substandard performance
• Promotion freeze
• Reducing benefits
• Pay raise freeze
• Reduction in pay
• Reduced workweek
• Temporary shutdown/layoff
• Work-sharing
• Job sharing
• Voluntary leave of absence/furloughs
• Voluntary retirements

Hiring, pay and promotion freezes make good business and interpersonal sense when a company is reducing staff particularly in the unit, site and department impacted. If challenged, an employer's continued cost-reduction strategies will help to underscore that the employer was acting from business necessity and in good faith.

Employers should not restrict cost reduction strategies to personnel costs exclusively. Other overhead costs such as travel and entertainment and advertising may be reduced. Employers should also factor in increased costs of customer service and public relations that will occur when any cost reduction program becomes public.

Carefully document all investigations, studies, actions and options explored. If challenged this paper trail goes a long way to prove the employer's need and intent.