LO5 - Job Security, Downsizing, and Employee Retention

• No-Layoff Policies


  Contrary to the downsizing trend of the 1990s
• No-Layoff Policies


  Employees who have job security are more receptive to change and more likely to be innovative
• Organizational Downsizing


  Reducing employment to improve organizational performance
• Three types of downsizing strategies:​

  1. Workforce Reduction​
  2. Work Redesign​
  3. Systematic Change
• Workforce reduction


  This is a short-term strategy focused on cutting the

  number of employees through programs such as attrition, early retirement or voluntary severance incentive packages, or layoffs.
• Work redesign


  This strategy takes somewhat longer to implement and

  requires that organizations critically examine the work processes and evaluate whether specific functions, products, or services should be changed or eliminated.
• Systematic change


  This is a long-term strategy requiring a change in the

  culture and attitudes and values of employees with the ongoing goal of reducing costs and improving quality. This strategy takes a long time to implement, and thus the benefits only accrue over time.
• Advances in AI, machine learning, and computerization are radically changing the nature of work.
• High risk of job redundancy:

  ​

  • Retail salespeople, admin assistants, food counter attendants, cashiers, truck drivers
• Low risk of job redundancy:​

  • Management, teaching, science, technology, engineering, math
• Retaining Top Performers​


  • Develop a planned approach to employee retention​
  • Become an employer of choice​
  • Communicate vision and values clearly, frequently, and consistently​
  • Reward managers for keeping good people​
  • Use exit interviews to obtain information