Step 2: Determine The Combination Of Alternative Work Arrangements And Layoffs That Will Best Help The Company


The second step in deciding whom to cut and keep is to determine what alternative work arrangements are practical, in conjunction with layoffs, to result in the needed cost reductions and retention of human capital. What is feasible for an organization will depend on its needs and flexibility in human resources policies (e.g., employment, compensation, and benefits). One thing is for sure. The earlier the managers start the process, the greater the flexibility and number of options they have at their disposal.

Notwithstanding the constraints, Table 6-2 identifies each of the alternative work arrangements to be considered and discusses the best fit scenario for each. As each alternative in the table is considered, managers need to ask if each is feasible: “Am I free to implement this without seeking a lot of permission?” Second, they need to ask if they have the resources to implement it quickly. The start-up cost and time involved are other questions. Offsite Net workers might require the company investing in information technology (laptops, modems, and networking software such as virtual private networks), which costs several thousand dollars per head. In addition, such an option will require training both for supervisors and employees in how to use and manage the technology as well as supervision while working from home and away from readily available support desk help.

Finally, there is the matter of time. An important cost savings associated with this option is reduced real expense. This can be achieved by paring floor space. With fewer people at work, less space is needed. Most department heads won’t have immediate control over this variable. They may be locked into a multiyear lease, and corporate officers may be the ones designated to decide about space options.

The IT manager needs to examine these options even further. First, he rules out offsite Net workers. This idea isn’t feasible, given the need to move quickly. Job/skill sharing will work better. The department has a number of people who may be interested in maintaining employment but at a reduced time level. Some are working spouses interested in freeing up time for family. Several others are close to retirement and would like to ease off from a full-time workload. The manager also needs to find people who are willing to accept part-time work. He needs to find people, however, who can work as a team and understand that job sharing means sharing accountability for deadlines and performance.

Table 6-2: Alternative Work Arrangements

Alternative

Best Fit Scenario

Job/skill
sharing

Work can be shared without losing accountability for results.

Collaboration and sharing are core cultural values.

Incumbents have superior team and interpersonal skills.

Contracting
arrangements

Job function is self-contained and relatively independent.

Job function includes highly specialized knowledge and skill sets.

Incumbents have the skill and discipline to work without close supervision.

Offsite
Net workers

Advanced telecommunication technology is available.

Work can be accomplished independently with little need for coordination. Incumbents have the skill and discipline to work without close supervision.

Temporary
assignments

Projects have definite scope with a beginning and an end.

Projects of high priority require immediate attention. Incumbents can adapt well to deadlines and frequent changes in assignments.

Next the manager needs to consider contracting arrangements in which an employee ceases to be an employee and comes to work as an outside contractor. Although this appears attractive, it is a solution fraught with potential legal problems. If the employee is neither truly working independently nor supplying his or her own tools, the company might be found liable for violating Internal Revenue Service regulations and employment laws. The manager decides to pass on this option, at least for now.

Temporary assignments are the last alternative option to consider in Table 6-2. Some of the work in the IT department reflects a project nature rather than ongoing work. Software modification and upgrading occur when needed (e.g., for a new product installation).

This is not a continuing process in the IT department. Note that some systems analysts and network analysis positions might be well adapted to temporary assignments rather than to full-time employment. Whoever is chosen for special assignments, however, should be a self-starter and skilled at managing projects to meet deadlines.

The foregoing analysis concludes with the manager’s choice among the four options for deciding who goes and who stays:

  1. Retain the person as a full-time employee

  2. Job share

  3. Special assignment

  4. Layoff




The Headcount Solution. How to Cut Compensation Costs and Keep Your Best People
The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People
ISBN: 0071402993
EAN: 2147483647
Year: 2002
Pages: 143

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