Reduction in Work Force

Reduction-in-Workforce

Joe, as one knows in the business world of today, companies come and go. As a business owner one has to be aware when downsize or make adjustments in the company. Leafy Services has grown to a productive lawn and consulting service that has passed your expectations. Leafy Services has built its reputation with the commercial community. The commercial community has taken a big economic slump, precipitated by high increase of gas prices. Many commercial companies have downsized their workforce to skeleton crews. Joe with that said, these commercial accounts are cutting contracts. You may have to consider cutting your workforce. “Curiously enough, as an industry study shows, the ‘Big savings’ amount to just 15% of cost saving with a 10% reduction in workforce (Simulation). Joe, you will have to layoff 10% of your workforce. These employees will be considered for layoffs by length of service, protected class, values and other protected class.

Out of your 50 employees Joe, Tim One your office manager and Carl Luck the equipment leasing manager have been employed with you for 2 years. Both employees have been and assets to your business from the beginning. Tim and Carl were both there from the first lawn that was cut by Leafy Services. The two employees can successfully run both departments at any given time. So which one do you layoff? As the owner Joe, you can not look at the length of services both employees have given to you over the years. They have both given you excellent service. You have to look at each workers performance and roles within the company. Which employee performance can bring Leafy Services to the next level? The employee that can help Leafy Service to the next level is the employee to retain and the other employee, speak to him about a severance package that is acceptable to both.

Joe when looking at the rest of your employees, you should not take into consideration their gender, race, or age. If you do you will be violating the provisions of the “federal Civil Rights Act of 1964, as amended by the Equal Employment Opportunity Act of 1972 and the Civil Rights Act of 1991” (Reed, 2002). For example; one of my coworkers filled a suite with the Equal Employment Opportunity Commission, because he thought he was being layoff due to race discrimination. You may also have a variety of “contract and tort (Personal Injury) claim that frequently accompany claims of discrimination such as wrongful termination, violation of public policy and defamation”(simulation). Leafy Services, want to try to stay away from any private lawsuits alleging discrimination from an employee. Before Leafy Service, starts to layoff any employee one should “invest in employment practices liability insurance, a type of insurance aimed specifically at discrimination claims”(p. 467).

Ethics and values do not play important roles in decision-making in companies anymore when its pertaining to layoffs. Employers, look at their bottom dollar margins not the individual contribution to their organization. Employees have always valued their jobs