July 2015

Management

A data-driven, experience-based approach to workforce optimization

There are alternatives for implementing successful and sustainable staffing changes. Staffing changes for the purpose of improving profitability should be viewed as an optimization process rather than a reduction process.

Glasscock, B., Solomon Associates

In recent years, many energy-intensive companies have sought to “cut costs at all cost.” Frequently, the decision is made to arbitrarily reduce staffing levels as a primary vehicle for reducing costs. Rather than viewing facility staff as a key asset that leads to higher performance and profitability, these organizations focus on reducing the cost of staffing by decreasing cost per staff member, the number of staff, or both. Organizations utilizing this approach also tend to use changes in organizational structure to solve business problems, only to find that another structural change is required two to three years later. Through this approach, organizational health and competency

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