Reduce the Risk of Reducing Head Count

In tough economic times, a company's work force is often one of the first areas targeted for cuts. However, legal issues arising from poorly planned reductions in force can wipe out the expected savings in payroll costs. You can reduce the risk of reducing head count with proper planning, design and implementation. Here are some key questions to consider:

• What are you hoping to accomplish?
• Who will go and who will stay?
• What is the impact on the composition of your work force?
• When and how will you tell employees?

Your communication with and treatment of affected employees can make it more or less likely that you will face discrimination charges and lawsuits.

This article appeared in the November 7, 2008 issue of the Charlotte Business Journal.