Summary

• Acting wisely requires planning ahead: (1) establish human capital priorities; (2) determine the combination of nonlayoff cost cuts, alternative work arrangements, and layoffs that will work best for the department and company; (3) match people with new work arrangements; and (4) move on to Step 4 of the headcount solution.

• Taking the time to conduct a human capital needs assessment before laying off staff will pay off by allowing managers to retain the skills and compe- tencies needed for the business rebound that lies ahead.