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    Retrenchment Strategies in HR

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    Paramjit Sharma
    Retrenchment strategies involve reducing a company's workforce to match operational needs. Reasons for retrenchment include overstaffing, increased costs, technology changes, and mergers. Strategies include downsizing, voluntary retirement, outsourcing HR functions, and early retirement plans. Companies implement retrenchment by communicating the changes, preserving employee dignity, providing counseling and legal notices, and staggering employee departures.

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    Retrenchment Strategies in HR

    Uploaded by

    Paramjit Sharma
    5K views34 pages
    Retrenchment strategies involve reducing a company's workforce to match operational needs. Reasons for retrenchment include overstaffing, increased costs, technology changes, and mergers. Strategies include downsizing, voluntary retirement, outsourcing HR functions, and early retirement plans. Companies implement retrenchment by communicating the changes, preserving employee dignity, providing counseling and legal notices, and staggering employee departures.

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    described Retrencment,downsizing,VRS, early retirement strategies and turnaround strategies

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    Retrenchment Strategies In HR

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    Retrenchment strategies involve reducing a company's workforce to match operational needs. Reasons for retrenchment include overstaffing, increased costs, technology changes, and mergers. Strategies include downsizing, voluntary retirement, outsourcing HR functions, and early retirement plans. Companies implement retrenchment by communicating the changes, preserving employee dignity, providing counseling and legal notices, and staggering employee departures.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    5K views34 pages

    Retrenchment Strategies in HR

    Uploaded by

    Paramjit Sharma
    Retrenchment strategies involve reducing a company's workforce to match operational needs. Reasons for retrenchment include overstaffing, increased costs, technology changes, and mergers. Strategies include downsizing, voluntary retirement, outsourcing HR functions, and early retirement plans. Companies implement retrenchment by communicating the changes, preserving employee dignity, providing counseling and legal notices, and staggering employee departures.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    The key takeaways are that retrenchment strategies refer to processes companies use to reduce staff size in order to meet operational needs. Common reasons include redundancy, overstaffing, increased costs, technology changes and mergers/liquidations. Common strategies mentioned are downsizing, voluntary retirement, outsourcing and early retirement plans.

    Reasons companies implement retrenchment strategies include employment redundancy, overstaffing, increased labor costs, changes in technology, and mergers or liquidations.

    Common retrenchment strategies mentioned include downsizing, voluntary retirement, HR outsourcing, early retirement plans, and project-based employment.

    Retrenchment Strategies

    What is Retrenchment?

    Process of a company or organization to reduce the number of people in its employment in order to match or meet operational requirements.

    Reasons of Retrenchment?

    Employment Redundancy Overstaffing Increased Labour Costs Technology

    Merger or Liquidation

    Strategies for Redundancy

    Downsizing Voluntary Retirement HR Outsourcing Early Retirement Plans Project Based Employment

    What is Downsizing ?

    Make a company or an organization smaller by eliminating staff positions

    What is Downsizing ?

    A company's reduction in the number of employees, number of bureaucratic levels, and overall size in an attempt to increase efficiency and profitability.

    What is Layoff ?

    Layoff also called redundancy is the temporary suspension or permanent retrenchment of an employee or a group of employees for business reasons, such as when certain positions are no longer necessary or when a business slow-down occurs.

    What is Pink slip ?

    Pink Slip refers to a practice by


    personnel department, of including a discharge notice in an employee's pay envelope to notify the Employee of his or her retrenchment of employment or layoff

    Why Downsizing ?

    Cost Reduction Business Requirements Merger Reorganization Unproductive Resources Recession

    Major Downsizing Companies

    HSBC-25000 G Motors-1 lac in 11 years Boeing 55k in 5 years GE-100k in 10 years Citigroup-1200 Cisco 1300 Kraft food 1600 Pepsi 8700 IBM -9000 HP-27000

    Strategy of Implementing Downsizing

    Communication Preserving Dignity Counseling to Employees Legal Formalities Appropriate Notice Immediate or Staggered

    Voluntary Retirement Scheme

    What is VRS?

    Voluntary Retirement Schemes is form of early retirement that is initiated by employers. Comprehensive compensation packages may be offered to number of employees.

    What Could be the Reasons of offering VRS?

    Excess Manpower Maintaining Profitability Unproductive Manpower Competition Takeover/Merger

    General Application for VRS

    Eligible Age Only Employees/Workers Compensation on VRS

    Restrict Service
    Income Tax Exemption VRS Acceptance Periodicity

    HR Outsourcing

    Outsourcing

    Today, over 70% of all Businesses outsource one or more elements of their business.

    Outsourcing

    Outsourcing means to delegate or authorize someone to act or perform on your behalf either at your place or outside

    Why Outsourcing

    1 Decreasing revenues and uneven cash flow 2. Increasing layoffs and rising lawsuits 3. Increasing operating Expenses 4. Reduced productivity and lower morale

    5 Cost Effectiveness
    6 Specialization

    Misconception about Outsourcing

    Necessitate Firing Employee

    Losing Jobs to Outsiders


    Losing Control Over Business

    Sharing Secrecy

    HR Outsourcing- Industry Drivers

    Overhead---52% Expertise----41% Core Competencies-33% Reduce Headcount30 Reduce Risk -22%

    HR Outsourcing-variations

    Payroll Processing HR Administration/Compliance Workers Compensation Risk Management Recruiting & Staffing

    Early Retirement Plans

    Early Retirement Plan

    A retirement plan which allows an employee to retire before the company's official retirement age.

    Early Retirement Plan-objectives

    Reduction in Cost Focus on Priorities

    Early Retirement Plan- application

    Age Eligibility Compensation Withdrawal

    Project Based Employment

    Project Based Employment

    Employing Manpower on a temporary basis or contract for a stipulated period or length of the Project may be called Project Based Employment

    Project Based Employment-types

    Project Based Fixed term Casual Employment Probationary Employment Regular Or Permanent

    Contract-terms

    Fixed term Open Ended Project Based Experts

    Turnaround

    A sharp, positive reversal in the


    performance of a company or the overall market.

    Strategy for Turnaround

    SWOT Analysis Re-engineering HR Strategies Production/Operation Strategies Financial Strategies Marketing Strategies Corporate Strategies

    Strategy for Retrenchment

    Legal Formalities Counseling Compensation Communication Appropriate Notice Sabbaticals Lowering Wages/Freezing Alternative Employment Evaluating Impact Least Productive Manpower Relieve with Dignity Intellectual Capital

    Summary

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