Explore BrainMass

Explore BrainMass

    Layoffs management

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The King Company

    Kevin Tu has managed staffing at King since the early years when the company had less than 100 employees. Tu runs a tight ship and manages the department with only one other recruiter and an administrative assistant, who maintains all job postings, including a telephone employment hotline and the company's job line web site. Tu is well-respected across the organization for his strict adherence to ensuring equity in hiring and job placement that goes well beyond equal opportunity requirements.

    Tu recently completed an aggressive hiring drive at major universities, hiring several new engineers and CAD specialists. These new hires barely squeaked in before the hiring freeze, but with the downturn in sales, the atmosphere has changed dramatically. The staffing department has known only hiring; they never had to plan for a layoff. Tu worries that a layoff of newly hired employees will seriously harm the company's reputation in the community and make recruiting difficult when the economy gets better.

    Tu received a confidential memo from Smith and Grant requiring a 10 percent reduction in labor costs by the end of the fiscal year. He wonders if there is some way to cut labor expenses while saving as many jobs as possible. He also worries about the loss of talent and retaining the knowledge of long-time employees. He's got some cost-saving ideas, but it certainly won't add up to 10 percent. Tu feels certain there will be a reduction in force. A few managers will be delighted; they all have some bad apples they want to get rid of. Tu wonders how he is going to ensure that the layoffs are equitable and nondiscriminatory. This is not going to be good for morale, and he dreads the backlash when word gets out.

    Please answer the following questions in 5-6 pages...including three references

    1. How can The King Company reduce labor costs and still save as many jobs as possible?

    2. How might up-to-date job analysis information aid King in determining how to reduce labor costs?

    3. Discuss the short-term and long-term implications of downsizing. Be sure to also discuss possible EEO issues that may occur in downsizing.

    © BrainMass Inc. brainmass.com October 2, 2020, 5:48 am ad1c9bdddf


    Solution Preview

    I am going to start with this. These are some of the ideas and examples that can help you formulate your assignment. Please read them, look at the references, and add your own information from your knowledge, experience, and class. Then if you need more help, ask and tell me specifically what you need.

    1. How can The King Company reduce labor costs and still save as many jobs as possible?

    The first thing to reduce labor costs is to freeze hiring. This ends any costs of recruitment and potential training costs, stabilizes the labor budget and allows the company the time to re examine the overall company needs. Money for recruitment can now be applied to other labor costs and without the need to look for new employees, current employees can perform needs assessments throughout the company.

    The second way is to stop overtime and overtime compensation. Hourly rates are often more easily identified, but exempt employees many have overtime as well that is compensated in other ways that cost the company money. Overtime should only be used in absolutely necessary situations.

    Using temporary staff for unexpected or special situations cuts costs. A flat fee for the employee is paid and added taxes and benefits are not something the company has to worry about.

    Per diem and jobs that work specifically through per diem should be limited. Travel expenses should be carefully examined and modified where possible.

    More use of virtual contact and phone should be employed where possible.

    Using the less expensive alternatives like telecommuting and job sharing can help.

    Identifying people willing to reduce hours voluntarily can help ...

    Solution Summary

    Some ideas on how to manage lay offs and other labor reductions.