Using a Staffing Strategy as a Context for Reduction Decisions
As discussed throughout this book, strategic staffing/workforce planning is a process that allows an organization to develop a long-term staffing strategy that is used as a context for defining the most effective short-term staffing actions (see Figure 22-1). Without this long-term context, it is at best difficult to make truly effective short-term staffing decisions—especially those involving staff reductions.
A well-designed staffing strategy can help organizations make reduction decisions that make the most sense in the long run. By defining future requirements (in terms of both capabilities and staffing levels), organizations create a new set of criteria that can be applied when reductions are being considered. As a result, staff reductions can be made in areas that will least affect the organization’s ability to implement both its current and its future business plans. For example, individuals with critical skills that will be needed in the future might be retained, even if they are not the most effective performers currently or do not have the longest tenure. The use of strategic staffing/workforce planning also allows the effects of turnover to be factored into each analysis, thus helping the organization to define the actual number of reductions required (i.e., reductions in excess of expected attrition).
Obviously, a staffing strategy can best be developed when there is a realistic, effective long-term business strategy or plan. Consolidations and downsizings should be implemented only after the organization has defined what its future objectives are and how it proposes to accomplish those objectives. Once such a plan has been developed, the staffing needed to support that plan can be defined. Staffing reductions that are based on short-term plans (or, worse yet, quarterly objectives) are sure to be detrimental in the long run.