In the current economy, corporations are asking Senior Management to take a closer look at the
bottom line and cut costs. This creates a koan for the CFO. The dismal state of the economy
has necessitated that corporations eliminate jobs for short term survival and economic health. A
global approach using cold hard numbers and math is the deciding factor on the percentage of
jobs that have to be eliminated.
A common concern among CFO’s is how do you keep from decimating and sacrificing the
company’s human capital that will be needed when it is time to turn the company in a positive
direction or to support growth when the economy rebounds.
1.) Reducing work week hours;
2.) Implementing partial month furloughs;
3.) Creating situations where employees can job share; and
4.) Reducing the pay of employees.
These measures save money for the company while allowing the company to retain more of its human capital. However, it creates a unique
environment that management has to address. Many employees just see these steps as a precursor to the next reduction in force. Senior
Management needs to clearly communicate their vision for the future of the company and how the employees are an integral part of this success.
2.) Implementing partial month furloughs;
3.) Creating situations where employees can job share; and
4.) Reducing the pay of employees.
These measures save money for the company while allowing the company to retain more of its human capital. However, it creates a unique
environment that management has to address. Many employees just see these steps as a precursor to the next reduction in force. Senior
Management needs to clearly communicate their vision for the future of the company and how the employees are an integral part of this success.
| Cost Cutting without Sacrificing Human Capital |
| "Renaissance Executives know that situations are not always what they seem and they have the vision to redefine the world around them to bring about successful innovation. " |
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