Which of the following has been the most widespread means of reducing a labor surplus?

During times of economic hardship or when a company adopts more efficient processes, a business can find itself with workers who do not have enough work to do. Called a labor surplus, this circumstance of having too many available worker hours is not ideal. It is costly when a business has idle employees to whom they must pay salaries and benefits. Handling a labor surplus is tricky, but some solutions can help in the short and long term.

Labor Surplus Basics

While a labor shortage is a challenging problem, a labor surplus can be equally difficult to manage. Perhaps your business recently implemented new policies or processes that made work more efficient, and now your company employs too many workers for the jobs you need to have done. In this situation, laying off your skilled workers is not your only option. Available alternatives are worth considering, particularly if your business plans to branch out and accelerate growth in other areas.

Perhaps business has dried up due to an economic downturn or changing trends that affect your industry. In this situation, where the prospects of profitability for your company are dim, you might choose to handle your labor surplus differently from the first scenario. If it doesn't seem like work is coming back anytime soon, it isn't prudent to keep on employees who don't have enough work to do and can't drive profits.

Note that an individual company labor shortage is not the same as a labor surplus area (LSA), which is a civil jurisdiction where the average annual unemployment rate for two calendar years is 20 percent or higher than the average rate for all states, according to the Department of Labor. This differs from a labor surplus on a company level, although it is essentially still an excess of available workers for the work that needs to be done.

Ways to Handle a Labor Surplus

The path your business chooses to handle a labor surplus depends on your current financial situation and corporate goals. If you have succeeded in implementing efficient processes or production techniques and no longer need all your factory staff, you can shift the responsibilities of some workers to a similar area to help your company grow vertically or horizontally. Layoffs are not your only option.

However, if you are struggling to make payroll and there is no sign that business is going to pick up in the near future, it is probably best to let some of your staff go. This way, your workers can collect unemployment benefits and search for new jobs to further their careers, while you maintain some profitability for the business.

In any situation involving a labor surplus, don't hire new workers. A hiring freeze is a necessary step while your company's management team determines the best path forward. In addition, you should end contracts with outsourced talent and transfer those tasks to internal labor instead.

Additional Labor Surplus Techniques

Other ways to deal with a labor surplus include pay cuts and reduced working hours for your staff. It's better to avoid these strategies when possible because they can lead to problems with employee morale or reduced effort by disenchanted staff, explains AZ Central.

You might also consider encouraging older employees to take early retirement. Older employees are often the highest-paid workers in a company. If early retirement is handled properly, this strategy can free up a great deal of money for your company while reducing the excess labor capabilities you have.

CHAPTER 5

PLANNING FOR AND RECRUITING HUMAN RESOURCES

Chapter Summary

This chapter explores how organizations carry out human resource planning. At the beginning,

the chapter identifies the steps that go into developing and implementing a human resource plan.

Each subsequent section of the chapter has a focus on recent trends and practices, such as

downsizing and outsourcing, which are prevalent to human resource management. Throughout

the remaining sections, an exploration into the recruiting process will be undertaken. At the end

of the chapter, a discussion will be presented on the role of human resource recruiters.

Learning Objectives

After studying this chapter, the student should be able to:

1.Discuss how to plan for human resources needed to carry out the organization’s strategy.

2.Determine the labor demand for workers in various job categories.

3.Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid

a labor shortage.

4. Describe recruitment policies organizations use to make job vacancies more attractive.

5.List and compare sources of job applicants.

6. Describe the recruiter’s role in the recruitment process, including limits and opportunities.

Extended Chapter Outline

Note: Key terms are boldface and are listed in the “Chapter Vocabulary” section.

I. Introduction

1.With a bigger workforce, an established company needs more creativity to avoid layoffs.

2.Trends and events that affect the economy also create opportunities and problems in

obtaining human resources.

3.To prepare for and respond to these challenges, organizations engage in human resource

planning, defined as identifying the numbers and types of employees the organization will

require to meet its objectives.

Which of the following is the fastest way to reduce a Labour surplus in an organization?

What two strategies are the most widespread methods for eliminating a labor shortage?

Which of the following is a strategy of avoiding a labor surplus where the amount of human suffering caused is high?

Which of the following strategies could be used to avoid a labor shortage?