The Pros And Cons Of Retrenchment

On the other hand, the success of the company is in large part due to the hard work of the staff who would lose their employment. In addition, it must be determined who would perform the work of the dismissed employees and if the company would be able to function without them. Moreover, the morale and productivity

"After the Layoffs, What Next?" is a case study involving the aftermath of the downsizing of Delarks, a Midwestern clothing store chain. In this case Harry Denton, the architect of the downsizing, is able to orchestrate a considerable financial turnaround, but in so doing he alienates most of Delarks' remaining employees and most of Delarks' upper-management. Denton is an inexperienced CEO whose management experience rests solely in managing a national chain's flagship store in New York. Though Denton's restructuring of Delarks' business model will cause Wall Street to take notice and toast Denton's efforts, his inexperience may in the end eventuate in Delarks' collapse. Delark's downsizing was done in a rather abrupt way in which most laid-off employees were entirely unaware that they were about to lose their jobs. The problem Denton unknowingly faced was that the employee-pool at Delarks was very tight-knit where members felt as if they belonged to one big satisfied family, and the unexpected lay-offs caused great distress within the company.

They will also be made aware of the reason for the redundancy dismissals and the number of the proposed redundancies. The process of selection and what procedures will be followed during this challenging time will also be made clear to each employee that may be affected. Last, they will also be made aware of the method of calculation of the redundancy pay they will receive if they are selected.

The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so

This decision could help the company to rebuild the trust of customers and suppliers for continuing in business. The workers would suffer a significant economic lost and could lose the motivation to work for the company. But there is a possibility that a positive view could emerge because they could appreciate the company’s efforts to keep them working there, and then cooperate to take the company to the next level.

Not following all steps for lawful redundancy procedures can impact on morale of business increasing staff turnover in the future and maximise the risk of legal dispute at tribunal. Legal remedies exist to prevent or punish employees for not following law.

Staff retention is the process of keeping staff in the business; businesses want to keep their employees working for them for as long as they can. During the employees working period, the employee would have accumulated experience and developed their skills whilst working for that business. Finding a new employee will be easy to find however they will not encounter the same knowledge and level of experience. ‘On average the cost of replacing an employee is £30,000, it also takes up 28 weeks on average for a new recruit to get up to speed.’ When employees decide to leave the company, the employer should preform an exit interview. During the exit interview, the employer may discover the reason/s why the employee wants to leave. It may be that he/she feels as if they are not being paid enough. Employers can try to resolve the issues, which may reduce the risk of other employees leaving the company. This improves performance as retaining staff means that you will have more employees working for. A great number of employees mean that you are more likely to make more profit at a faster rate, this will have a positive impact on the business’ financial performance. Retaining staff also means that they will continue to develop their skills and accumulate experience even further. Once a staff member has been there for a long time they may be promoted to a managerial role.

Analysis – Issue 2: How should Lay’m-Off account for the restructuring costs of relocation and staff training costs?

Downsizing or layoffs at a company, whether it is in WeaveTech or any other company have its legal risks that are associated with the exercise. The potential legal risks associated with the downsizing situation would be discrimination, such as how to select the employees that will be laid off (Benn, Dunphy, & Griffiths, 2014). This could bring about discrimination claims as some of the employees may argue that they were terminated because of their gender, age, race among others. Also, there could be legal issues if the WeaveTech did not give a sixty-day notice since it has more than a hundred employees as this is a requirement by the law under the Worker Adjustment and Retraining Notification Act (WARN). Other legal issues that could get WeaveTech

All businesses at one time or another will have to deal with employee layoffs due to a re-organization or changes in the economy. Employee layoffs can have a damaging impact to the remaining employee and management staff. There are several solutions that can be done to alleviate the negative impact and the recommendation is to provide managers with the proper training on how to properly handle a layoff so there is a more positive impact on the remaining staff. Proper training prepares managers for

Evidence of retrenchment measures such as austerity can be seen in many contemporary examples, one of the biggest areas at the moment of the government’s public sector spending cuts is undoubtedly social care cuts and reductions. It is said that more than £1bn will be cut from social care services for older and disabled people in England over the next year (Butler, 2015). Consequently leaving tens of thousands of elderly people without help or a massive reduction in help with basic tasks such as washing, dressing and eating. However, despite the rising demand driven by an ageing population, fewer people will qualify for state-funded care while those who continue to receive a service may have to accept lower levels of support and a worse quality

Opposition from Unions in different subsidiaries against the layoff could cause serious problems like high severance package and possible strikes

The company needs to get the employees on board and support them. The staff do not seem to think the company has their best needs on board and are looking to join the Unite trade union, which the company does not recognise. Trade Unions are not there just to protect their members in matters against their

The employee’s morale is low, they feel undervalued and unappreciated. With inflation rates and lack of raises their take home pay is less than before and the employee’s perception is that the company is doing well. During some tough years before, the employees that remained had pulled together and working harder to help keep the company open, they now feel that since business is good, they have not been appreciated or recognized for their commitment. They are concerned about their benefits plan and pension changes that may be happening.

a good employer. Hence the employee retention rate is very low. The purpose of this report is to propose a