In a crisis, most companies are carefully analyzing staff performance and staffing levels. This is not surprising because every project and business process is designed to generate profit, if you do not keep track of costs and work to reduce them, then literally a few will survive the crisis. However, an illiterate approach to staff restructuring can lead to higher costs and business processes and, instead of cleaning up, the organization will receive problems.
Principles of restructuring:
- The quality of the tasks performed should not fall.
- Staff costs should not exceed the planned scope.
Optimization algorithm:
1. Planning a staff reduction project
The purpose of planning is to establish a list of procedures, deadlines and persons responsible for implementation.
2. Analysis of the current situation
This method consists in comparing the number of employees of each unit, their tasks and labor-intensive work. It is not uncommon for a department of 5 people to do the work that only 2 people can do at full capacity. Since the days of the USSR, the habit of inflating the state has been instilled, as the country pursues 100% of the employment of the population.
Optimization algorithm:
1. Plan a staff reduction project
The purpose of planning is to establish a list of procedures, deadlines and persons responsible for implementation.
2. Analysis of the current state
Another paradoxical and at the same time common situation on the labor market is that for each pair of employees a manager is appointed. It turns out that the line managers work in a non-stressed state, and the company suffers losses because of this. The main purpose of this process is to determine the optimal number of people for the current workload and to compare it with the number of staff in units.
3. Allocation of redundant staff
At this stage it is necessary to form a clear understanding of the numbers for each department. There are frequent situations where there is a shortage of people in some directions but in some surpluses. This makes it possible to redistribute the load and save valuable staff.
4. Plan a reduction program
The task is not easy, sometimes the subjective factor and the relationships within the team have a strong influence. It’s important to keep your head cold because business viability is at stake. Two-step implementation will simplify the procedure.
Step 1. Determine who should be reduced or fired completely
It is clear that the organization employs many “good guys”, but it is important to divide all into 2 categories: key staff and mediocre. Key employees include those without whom business processes will increase or risk deteriorating. They definitely need to be saved!
Step 2. The other employees are divided into five categories:
1) Who brings more profit.
2) Owners of the great experience that the company needs and do not quickly rule it out.
3) Owners of great potential.
4) Those who cannot be fired by law.
5) Everyone else (systematically fails to meet tasks, deadlines, and other not-so-efficient employees who can be eliminated without significant business loss).
If you need help optimizing staff costs, you can contact us at info@hrservices.bg
