To cut costs and increase efficiency, organizations that are of any size reduce their workforce and offices. The practice is on the rise and more businesses and corporations of all sizes are doing this because it gives them more chances to win in competitive markets.
In order for an organization to effectively reduce its size, it must first take the time to examine the entire process. The impact of downsizing is not always significantly on staffing. In fact, some organizations may find that outsourcing a strictly mechanized division will lower expenses. It could be the case that the expense of a lease for a factory, for instance costs more than purchasing the manufactured product from a different source.
The majority of downsizing translates to cutting down on employees since payroll is traditionally the biggest expense for any company. Large corporations might discover that renting the services of a national courier service is cheaper than running its own mailroom and delivery services. Eliminating delivery employees could also improve their operating budget.
Every downsizing company must exercise professional care when implementing layoffs, despite the current economic difficulties. Employees who have done good but are dismissed due to reductions in size should be able to work until they are able to. While the organization is not accountable for any aspect of employees’ lives, they should demonstrate good faith and be open to learning from their mistakes. Retraining in other departments should be a possible option and a priority, and HR departments of organizations should as well work with those employees to assist to find new jobs elsewhere.