Reduction in Force

Powerful Essays
Today, many health care organizations have been forced to reduce their workforce due to the downturn of the economy. Marshall and Broas (2009) state that whenever health care organizations conduct a reduction in force (RIF); there is the potential for legal risk. However, with proper planning and implementing, employers can minimize the risk of litigation (Marshall & Broas, 2009; Segal, 2001). Hence, before carrying out a 10% reduction in workforce, there are a number of steps that need to be taken to ensure it is successful.

In the planning process, the health care organization’s first step should be to identify alternative expense reduction measures that can be implemented. Marshall and Broas (2009) and McConnell (2006) state that measures such as hiring freezes, reduced work hours, reduced salaries or bonuses, early retirement, limited use of temporary workers and discrepancy spending should be explored first before resorting to mass reduction in the workforce. Given the numerous legal cases in which employees have accused companies of lavish spending during layoff processes, a company should consider taking expense reduction measures. This would show that the company had explored another alternative before resorting to a RIF, and it would also help employers dismiss employees claims that the RIF was not necessary or discriminatory ( Marshall & Broas,2009) .Whatever alternative expense reduction measures were taken by the company along with the reasons for doing so should also be documented( Marshall & Broas,2009).Documenting the reason for the RIF, should be the next step.

Cost cutting, discontinuation of product or services ,technological changes, and consolidation due to mergers and acquisitions are commonly legal ac...

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...vironment by establishing a reward and recognition system to reward employees for their special efforts. Managers do not like to tell people that their positions are being eliminated. In fact, many managers, consider conducting a RIF as the most difficult task they will have in their careers. Therefore, it important that the organization carefully prepares and conducts a RIF with thoughtfulness and respect to minimize the potential damage to employees.

Works Cited

Marshall, A. B., & Broas, J. M. (2009). Getting it right in reductions in force: How to minimize legal risks. Venulex Legal Summaries, 18-25. Retrieved from EBSCOhost

McConnell, C, R. (2006). Umiker management skills for the new health care supervisor (4th ed.). Sudbury, MA: Jones and Bartlett Publishers

Segal, J. A. (2001). Workplace tribal councils. Hrmagazine, 46(6), 197. Retrieved from EBSCOhost