Containing Costs While Retaining Top Talent and Maximizing Productivity
• Today, most HR managers have been under pressure to cut labor costs, and gaining productivity from workers became an even bigger priority.
How firms are handling this challenge : Managing benefits
ü Cut in pension, bonus, and health case plans
ü Offer programs and incentives to promote employee health
Downsizing
ü leave employees facing insecurity
ü lower level of employee dedication and productivity
ü Create hidden costs of downsizing
Outsourcing
ü Increase organization’s flexibility
ü Lower overhead costs
Offshoring or global sourcing
ü Reduce labor costs by relocating work to countries such as
India, China, and Philippines
ü Involve some hidden costs
Productivity improvement
ü Defined as “the output gained from a fixed amount of input”
ü Resulted from a combination of employee’s ability,
motivation, work environment, and technology used to work
Containing Costs While Retaining Top Talent and Maximizing Productivity• Today, most HR managers have been under pressure to cut labor costs, and gaining productivity from workers became an even bigger priority.How firms are handling this challenge : Managing benefitsü Cut in pension, bonus, and health case plansü Offer programs and incentives to promote employee healthDownsizingü leave employees facing insecurityü lower level of employee dedication and productivityü Create hidden costs of downsizingOutsourcingü Increase organization’s flexibilityü Lower overhead costsOffshoring or global sourcingü Reduce labor costs by relocating work to countries such asIndia, China, and Philippinesü Involve some hidden costsProductivity improvementü Defined as “the output gained from a fixed amount of input”ü Resulted from a combination of employee’s ability,motivation, work environment, and technology used to work
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