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

There are intangible costs to reduce a work force. Failure to handle layoffs in a consistent and fair manner increases the odds that an employee will take legal action, bad-mouth the company, or pursue both routes.

Layoffs done indiscriminately may also increase risks of inappropriate or illegal conduct such as inventory shrinkage, vandalism, theft of confidential information, industrial sabotage, or workplace violence.

Legal red flags require additional due diligence. Managers need to take into account federal and state laws and regulations, so they need to be briefed far in advance.

The company’s survivors—those not fired—need to be listened to and supported to ensure the company can rebuild with them as part of a strong foundation for the future.