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Regional CEO's question about reducing employee costs.

Assuming that I am the assistant manager my role is to deal with HR issues that arise routinely in the workplace.

I must deal with the following issue: e-mail was sent to me from the Region's Chief Executive Officer (CEO), who is looking for ways to reduce employee costs. The key comments in the memo included:

Nearly 40% of our region's costs are employment related. Right now, nearly 100% of our workforce are full-time or part-time employees. We have few employees who are provided by temp agencies, and we have even fewer independent contractors doing the things that have to be done for us to serve our customers. I'd like you to consider the use of temps and contractors as a way to reduce our employment costs. Will the law allow us to do that? I don't want the lawyers involved -just an initial explanation. You don't need to worry about the cost issues of the various types of workers - I just want What alternatives could we use to settle any issues on the job between the company and its employees? Which processes work best, and for what types of problems? How are the alternatives the same and different? When you assemble this material, we'll decide what to do.

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Will the law allow us to do that?

Basically, we're looking at this from a standpoint of reducing the workforce and replacing employees with temp workers and subcontractors. We're not sure if we're replacing all the employees, but let's assume we are. There is no law against not having employees and having only temp workers and subcontractors. However, it gets sticky. The problem is using temp workers and subcontractors long-term and not hiring ...

Solution Summary

I must deal with the following issue: e-mail was sent to me from the Region's Chief Executive Officer (CEO), who is looking for ways to reduce employee costs. The key comments in the memo included:

Nearly 40% of our region's costs are employment related. Right now, nearly 100% of our workforce are full-time or part-time employees. We have few employees who are provided by temp agencies, and we have even fewer independent contractors doing the things that have to be done for us to serve our customers. I'd like you to consider the use of temps and contractors as a way to reduce our employment costs. Will the law allow us to do that? I don't want the lawyers involved -just an initial explanation. You don't need to worry about the cost issues of the various types of workers - I just want What alternatives could we use to settle any issues on the job between the company and its employees? Which processes work best, and for what types of problems? How are the alternatives the same and different? When you assemble this material, we'll decide what to do.

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