Employees in each company should have the necessary skills and abilities to cope with the tasks. For the activities of the entire enterprise to be effective and profitable, management must take care of optimizing the number of employees. The company should have as many citizens as are necessary for the optimal functioning of the enterprise. Therefore, often after a thorough analysis, it becomes necessary to dismiss, reduce, transfer or hire employees. Optimization can be performed by the direct management of the company or by representatives of third-party organizations specializing in this event.
Optimization concept
The optimization of the number of employees in an enterprise is the process of determining the number of employees necessary for the effective and optimal functioning of a company. It is under such conditions that it can be expected that excellent work of the company will be ensured with minimal labor costs.
Optimization of the structure and number of personnel allows us to determine the best ratio of labor costs to the efficiency of specialists. The management of different companies can use different methods to implement this process, but the result is usually a change in the number of employees in the company. It is allowed to leave the number of hired specialists unchanged, but at the same time transfers are made between different structural units.
Process features
Any employer should be aware of some of the nuances that will help optimize the number of staff:
- most often after completing this process, it is required to make certain changes to the staffing of the company;
- often, management has to completely change the basic aspects of the functioning of the enterprise;
- in large companies, optimization is carried out by direct employees of the company with the necessary education and knowledge;
- Small companies engage third-party organizations to complete the procedure.
It is through this process that firms can determine how many workers are required for a company to make high profits with minimal labor costs for hired professionals.
What are the goals achieved?
The goals of headcount optimization are as follows:
- reducing the cost of the business owner to pay hired specialists;
- professional development of employees, as they perform exclusively tasks that correspond to their skills, education and qualifications;
- getting rid of employees who do not bring any benefit to the company, and almost every company has such inefficient employees who do not want to improve their performance and are not interested in the development of the company;
- improving the organizational structure of the company, which provides ease of management for all employees of the company.
Although with the help of a well-organized process you can really achieve numerous significant goals, it is important to trust the procedure only to experienced professionals.
The consequences of illiterate optimization
If the optimization of the number of personnel is not correctly performed, this can lead to negative consequences for the enterprise. Management will not be able to see any of the benefits of the process, and it can also lead to a decrease in profit from activities.
If employees who are actually important and necessary for the operation of the enterprise are laid off or laid off, this will cause a loss, a worsening of the company's image or the dismissal of other employees of the company. Therefore, the procedure should be carried out only by experienced specialists who will carefully analyze all the employees of the company beforehand.
When is a procedure required?
Measures to optimize the number of staff may be different. They are selected depending on the reason for the process. Most often, a process is required in the following situations:
- the company spends too much money on wages for a large number of employees, but at the same time, profit from activities is considered low;
- certain adjustments are made to the corporate culture of the enterprise, and some conservative employees cannot change the rules of their work, which leads to a decrease in the efficiency of their activities, and this makes it necessary to search for more loyal and successful specialists;
- various technologies or equipment are being introduced into the production process that existing specialists have not previously worked with, so it is likely that they simply will not be able to cope with new tasks;
- due to low profits, the management of the company may decide to stop working in any field of activity, therefore the need for the services of some specialists ceases, which leads to a reduction in posts or staff.
The main goal of this process is to reduce the cost of wages and salaries and increase profits from the activities of the enterprise. But in the process of optimizing the number of personnel in the enterprise, it is necessary to take into account the reasons for its implementation.
Forms of the process
There are different forms and types of optimization of headcount. They are selected depending on the reason for the implementation of the process and the characteristics of the change in the number of employees. The following forms of procedure are selected:
- reduction in the amount of labor costs for employees;
- Search for new employees with high qualifications, experience and other necessary skills;
- the implementation of various activities, the main purpose of which is to increase the qualifications of existing employees or use motivation to improve performance.
Depending on the available form, optimal methods are chosen.
What methods are used to optimize headcount?
To perform this process, enterprise management can use various methods. As a rule, they resort to such methods:
- dismissal of employees (possible reduction, as well as dismissal of their own free will or on the basis of a special agreement of the parties);
- elimination from the company of certain units that do not bring profit;
- employee leasing, outsourcing or outstaffing.
The choice of methods for optimizing the number of employees depends on the reasons for the process, as well as the goals that must be achieved by the enterprise management. Next, we consider each process in more detail.
What effective measures are used?
To optimize the number of employees, more and more different methods are beginning to be used, which are highly efficient and new to employers. These include:
- Outstaffing. It is represented by a process during which employees are transferred outside the company. They can be drawn up in another company, performing the previous tasks.
- Outsourcing It implies a direct work process beyond the limits of the firm. This leads to a reduction in company expenses, as well as a reduction in the number of employees.
- Leasing employees. He assumes that the company uses the services of an employee who is not formalized. Such specialists are offered by special leasing companies on the basis of a specific agreement. Over a period of time, management of the organization evaluates the abilities and capabilities of the specialist. If the cooperation is successful, then an unlimited employment contract is concluded.
In Russia, the above methods for optimizing the number of staff in an organization are rarely used, but they are effectively used in Western countries, as they allow achieving goals with minimal costs and efforts on the part of the owners of the enterprise.
Staff Reduction Rules
The manager who plans to carry out the optimization should study certain recommendations of specialists, for which he selects the appropriate professional literature. The optimization of the number of employees is almost always associated with the need to reduce the number of employees in the company. This may be due to a change in the direction of work, the introduction of new equipment or other factors.
To reduce the number of employees, different methods can be used:
- the dismissal of citizens by drawing up a peace agreement by which employees can expect to receive good compensation;
- if it is required to stop cooperation with employees who are unable to cope with their main tasks, therefore their actions lead to poor results of the company’s functioning, then certification is carried out, therefore if it turns out from the results of this process that the citizen really does not have the necessary skills and knowledge, then he quits due to inconsistency of the position;
- reduction of staff or position, but the procedure should be carried out on the basis of legal requirements, therefore all employees with whom contracts will be terminated are notified of the planned process in two months, and also some persons have the preemptive right to stay in the company;
- the dismissal of workers who regularly violate labor discipline, since under such conditions they do not bring any profit to the company, therefore they can be dismissed as part of disciplinary proceedings.
It is the need to stop cooperation with hired specialists when optimizing the number of employees that leads to the negative attitude of employees to this process.
Reasons for having unnecessary employees in the company
The optimization of the number of employees is almost always associated with the need to terminate labor agreements with different employees. They may not cope with the tasks or may not work in another field of activity. Identifying such specialists is quite simple, but it’s important to know where they come from in the company. The reasons for the appearance of excess workers who do not bring the company any profit include:
- if the company updates equipment and technologies, then many employees simply can not cope with these items, and usually this problem occurs in people after 45 years;
- the company uses poorly composed and ill-conceived job descriptions, so many employees do not understand what actions are included in their duties;
- the whole office is not divided into any zones and departments, so all employees are in one large room, performing various functions;
- the head of the company is a newcomer to the business, therefore, during the opening of the enterprise, he did not form a competent organizational structure;
- there is no personnel planning in the company, so employees are hired spontaneously, and this usually applies to enterprises where people invite their relatives or friends to work;
- the company does not have a clear separation of powers between all employees of the company;
- in each branch, the chief manager can independently perform functional services, which often leads to the illiterate organization of work of employees;
- with employees who must perform temporary work, a standard labor contract is drawn up;
- new equipment appears in the company for which new employees are needed, and past specialists remain as assistants, although they do not actually bring any benefit to the company.
In order not to face the need to lay off employees in the future, entrepreneurs must take a responsible approach to the selection of employees. For seasonal or one-time work, it is advisable to draw up fixed-term contracts.
How are extra employees identified?
Before optimizing the number of personnel, it is necessary to establish the reasons for its implementation, as well as select the best methods and forms. Typically, the procedure is required when identifying a large number of employees who do not bring the company any benefit. You can define them in the following ways:
- a personnel audit is carried out to determine the structure of employees by position, age, and other criteria;
- compares the growth rate of labor costs with the growth rate of profits from the activities of the company;
- the number of employees in competing firms is estimated.
Before dismissal or reduction of employees, it should be assessed whether this process will bring a positive result for the work of the enterprise.
How is the process performed?
If the head of the enterprise realizes the need for optimization of employees, then he can perform the process on his own or turn to professionals. If you choose the classic approach to this event, then the following methods are performed:
- the director of the company determines the perspective directions of the company’s development, as well as the goals that must be achieved over a certain period of time;
- forms and methods of future optimization are selected;
- the chosen procedure is being implemented, for which new specialists can be hired, as well as current employees quit or reduce;
- all processes implemented in the company are reviewed, since the cause of losses can be not only employees who do not have the required level of qualification, but also other nuances of the company’s activities;
- a new staffing is being drawn up;
- new job descriptions or other documents are introduced, on the basis of which specialists work.
If the company applies a reduction to reduce the number of employees, then the employer must prepare for significant financial losses, since it is necessary for reduced employees to pay severance pay.
Often even budgetary institutions receive orders to optimize the number of staff. This is usually due to the low efficiency of such an organization.
Recommendations to employers
If the head of the enterprise decides to use optimization, then it is advisable to consider the following tips:
- to dismiss each employee it is necessary to find an individual approach;
- the employer must prepare for dissatisfaction on the part of workers;
- it is advisable to use different incentives that allow citizens to quit on their own or by drawing up an agreement of the parties;
- if necessary, used in combination;
- if the employee has good experience, but does not cope well with new tasks, then it is advisable to send him to professional development, and not immediately force him to quit.
If, as part of optimization, employees are dismissed illegally, they can go to court to reinstate themselves and receive compensation for moral harm from the director.
Conclusion
Restructuring and optimization of the number of personnel in the enterprise are complex processes that can be implemented in different forms and types. Their main goal is to minimize the cost of workers. They can be hiring or firing different workers.
The procedure can be performed by company employees or by third-party specialists. If the dismissal of specialists is planned, it is important to carry out this process taking into account the requirements of the law, so that such an employer decision could not be challenged.