What does reduction in workforce mean?
reduction in force
A reduction in force (RIF) occurs when a position is eliminated with no intention of replacing it and results in a permanent cut in headcount. An employer may decide to reduce its workforce by terminating employees or by means of attrition.
What criteria should be used in selecting employees for a workforce reduction?
Multiple Criteria Ranking
- Employee’s long term potential and attitude.
- Employee’s skills, abilities, knowledge, and versatility.
- Employee’s education and experience levels.
- Employee’s quantity and quality of work.
- Employee’s attendance history.
- Employee’s tenure within the company.
What are the criteria of employee selection?
Qualifications versus Selection Criteria Selection criteria include, but go further than job-related qualifications. They force you to consider non-job-specific skills, general knowledge, personal attributes and traits vital to successful performance and long-term employment.
What are the legal considerations for workforce reductions?
But reducing costs through terminations and layoffs can have a variety of adverse consequences. Employers must be aware of numerous employment and employee benefits laws when considering these drastic measures.
Can You renegotiate a contract to reduce workforce?
If you have employees with whom you have a contract, you can only implement these cost reduction measures by renegotiating the contract. This is also true when employees are represented by a union. The business justification for a workforce reduction, if a workforce reduction become necessary, should be documented.
Do you have to notify employees of reduction in force?
While you can technically layoff these groups of employees, you need to give a good reason for doing so. Be ready to defend your reduction in force against any unsolicited discriminatory claims regarding unfair layoffs. After you’ve settled on the exact number of workforce reductions, it’s time to notify affected employees.
When to use workforce reduction to increase earnings?
In addition to reducing costs, workforce reduction is also used to increase earnings for a company. For example, if a staffing department hired too many employees for a particular position, the company may be spending more money than it needs to on labor costs.
But reducing costs through terminations and layoffs can have a variety of adverse consequences. Employers must be aware of numerous employment and employee benefits laws when considering these drastic measures.
If you have employees with whom you have a contract, you can only implement these cost reduction measures by renegotiating the contract. This is also true when employees are represented by a union. The business justification for a workforce reduction, if a workforce reduction become necessary, should be documented.
While you can technically layoff these groups of employees, you need to give a good reason for doing so. Be ready to defend your reduction in force against any unsolicited discriminatory claims regarding unfair layoffs. After you’ve settled on the exact number of workforce reductions, it’s time to notify affected employees.
Why are employers looking to reduce their workforce?
Since the collapse of the U.S. economy several years ago, many employers have been in survival mode and/or looking to improve efficiencies. For that reason many cost-cutting measures have been put in place, including close scrutiny of the biggest costs attributable to employees—salaries and benefits.