The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People

Chapter 1: Why the Easy Solution to a Business Crisis—Layoffs—Is Not Necessarily the Best Solution

Table 1-1: Differences between Industrial Work and Knowledge Work

Chapter 2: What Companies Are Doing to Cut Costs and Keep Their Best People

Table 2-1: Company Size of Survey Respondents

Table 2-2: Workforce Laid Off by Companies

Table 2-3: Cost-Cutting Measures in Conjunction with Layoffs

Table 2-4: Alternative Work Arrangements in Conjunction with Layoffs

Chapter 3: Leadership During a Crisis—How to Maintain Morale and Keep Your Best People

Table 3-1: Motivation to Stay and Leave in a Crisis

Table 3-2: Incentive Plan Design

Chapter 4: Step 1—Prepare Your Organization for What’s in Store

Table 4-1: Channels for Communications in a Business Crisis

Table 4-2: How to Use Communication Channels

Table 4-3: A Communications Action Plan

Chapter 5: Step 2—Plan for Three Rounds of Compensation Cost Cutting

Table 5-1: Round One Cost Savings

Table 5-2: Cost/Benefit Considerations of Alternative Work Arrangements

Table 5-3: Cost/Benefit Analysis of Alternative Work Arrangements

Table 5-4: Benefit and Cost Consequences of Layoffs

Table 5-5: The Real Cost of a Layoff (Short-Term Costs Incurred)

Table 5-6: Net Short-Term Cost Savings (Benefit) of a Layoff

Table 5-7: The Real Cost of Layoff (Long-Term Costs Incurred)

Spreadsheet for Calculating Cost Savings

Spreadsheet for Calculating the Overall Net Cost Reduction of Alternative Work Arrangements

Spreadsheet for Calculating the Net Short-Term Cost Savings (Benefit) of a Layoff

Spreadsheet for Calculating the Real Long-Term Cost of a Layoff

Chapter 6: Step 3—Decide Whom to Cut and Whom to Keep

Table 6-1: Strategic and Process Competencies

Table 6-2: Alternative Work Arrangements

Table 6-3: First-Year Transaction Cost

Table 6-4: First-Year Net Savings

Table 6-5: Spreadsheet for Employee Analysis

Table 6-6: First-Round Analysis

Table 6-7: Second-Round Analysis

Chapter 8: Step 5—Implement Alternative Work Arrangements

Table 8-1: Job/Skill Sharing

Table 8-2: Contracting Arrangements

Table 8-3: Furloughed Offsite Net Workers

Table 8-4: Temporary Assignments

Chapter 9: Step 6—Implement Layoffs

Table 9-1: Alternative Ways to Communicate a Layoff

Table 9-2: Advance Notice for Layoff

Table 9-3: Reactions of Employees to Layoffs

Chapter 10: Step 7—Help Survivors Cope and Get Back to Business

Table 10-1: Creative Ways to Motivate and Reward Your Best People