s not only of the new hire option, but also means that those employees who quit, get terminated, or retire will not be replaced in the workforce. If these positions are needed to support the business before a reduction in workforce, a temporary position may be a good idea at this point. This will eliminate a lay-off in this position later and save the company money since benefits will not be necessary for the temporary employee. This method is not obstructive to organizational morale and commitment. Another technique to defer downsizing is a reduction in hours of operation. Hewlett Packard participated in what it Called a "fortnight work schedule." That is, every two weeks(a fortnight) employees do not work for one day. When it was used during a slow sales period in August1985, wages were cut 10%. To help employees ease the crunch, they were allowed to use vacation so there was no immediate loss in pay. In Europe, the giant auto-maker Volkswagen, has been climbing back to profitability after having put 100,000 of its workers on a four-day week. The company estimated that it has avoided laying off as many as 30,000 employees by using the reduced workweek. A third way to eliminate downsizing could be to reduce the pay for all employees. However, this method is known to cause low morale and sometimes employees reduce their production output to match the reduction in pay. One way to avoid this productivity reduction is to make the pay-cut temporary. A voluntary severance package can sometimes trigger a reduction in the workforce. This means of downsizing may be all that some employees need to start their own business, go back to school, or find another job. Oftentimes this method will enhance the workforce and get rid of disgruntled employees. One of the easiest and least harmless methods to the employee is early retirement. Consider what would have happened to a 50 year old, $50,000-a-year employee with 25 years of service at DuPont when i...
