Dear Headcounter:
You can make incremental improvements by asking all department heads to create a plan for how they would reduce headcount by 10 percent. In the end, you’ll probably be able to cut 5 percent with this method.
Taking a re-engineering approach gives you a more significant impact. It generates greater results than focusing on one department at a time. Assign an executive–someone not in human resources–to lead the re-engineering effort. The major objective is to eliminate unnecessary work through process redesign, automation and redesigning/reassigning jobs.
This enables you to identify the high-caliber talent you need for higher-level performance. Those who don’t find a fit in the new organization should be provided assistance to find a job outside the organization.
Expect to reduce the amount of administrative and non-value work by 40 to 60 percent, while doubling performance. You most likely won’t need as many people in the end, and will experience cost savings by eliminating waste and achieving outputs that are faster, less costly and more efficient.
To ensure that your efforts generate the desired outcome, consider hiring an experienced consultant with a proven track record to work alongside the executive leading your initiative.
SOURCE: Carl Nielson, principal, The Nielson Group, Dallas, May 5, 2004.
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The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.