Dealing With Excess Manpower

employee retention and excess manpower
employee retention and excess manpower

There will be times that a company will experience an excess workforce. Also called a ‘labor surplus,’ this means the business has more available workers than needed. Dealing with extra employees can be tricky, but the organization can take some steps to achieve the best results.

What Is An Excess Workforce?

The excess workforce is usually the effect of a business that has gone through some transitions or changes within the organization like technological transitions, changes in the structure, functions, or the company’s work system that leads to lesser need for the human workforce. Once the company has regained footing and improved its process, it is left with staff workers who have fewer things to do.

How Do You Handle Excess Workforce?

In handling an excess workforce, employers usually take some actions to minimize its effect. The following are some steps to cope with the labor surplus occurring in your organization.

1. Workforce Transformation

If the company is experiencing financial stability, it would be better to shift some responsibilities and restructure them. The key is to identify critical talents, skills, and leaders and distribute the workforce per department based on the planned organizational structure and need. It is an excellent opportunity for the company to grow horizontally or vertically instead of laying people off.

2. Hiring Freeze

Sometimes the operational process is already efficient enough not to have any changes. You can give a heads up to the recruitment office that there won’t be any openings at any time soon instead.

3. Early Retirement For Senior Employees

Those who have senior staff on their employee list can also urge their members to opt for early retirement. Older staff tends to be paid higher than their younger counterparts, freeing up a good amount of money for the company.

4. Reduced Working Hours

The management can offer furloughs, additional day-offs, or restricted working hours for the team. This plan also saves much money as it can apply to a broad group of people.

LHH helps individuals in building better careers, better leaders and better businesses.

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