Options for Reducing an Expected Labor Surplus

By comparing forecasts for labor supply and demand for specific jobs, HR planners can determine whether there will be a labor surplus or a labor shortage for certain categories. The second step in human resource planning is to define specific goals regarding a desired outcome and provide benchmarks for determining the relative success of a program aimed at addressing labor surpluses or shortages. There are a number of strategies for addressing the issue of a labor surplus that vary according to expense, speed, effectiveness, and the amount of human suffering.

Roll the cursor over each label to read the description and then drag each item to the appropriate position on the chart that corresponds to the speed and amount of human suffering associated with the various options.

Workforce reduction

Unpaid leave