Layoffs Alone Aren’t Always Best Way to Cut Costs, Says Alsbridge

As business and the economy slow down, companies are faced with the need to cut costs.  But relying only on layoffs and reduction-in-force cuts isn’t the best answer, according to Alsbridge, the leading outsourcing advisor.

Many companies lay off employees without a comprehensive plan that is effective, humane, and strategic, said Alsbridge CEO Ben Trowbridge. 

Without a well-thought-out plan, Mr. Trowbridge said, three scenarios often go hand in hand:

·        Layoffs are the only option seriously considered

·        Planning layoffs (who, when, and what type of severance) is haphazard

·        Consequences other than lower payroll costs aren’t considered

Although “best cost” is an imperative in a receding economy, experienced outsourcing counsel like Alsbridge can help companies plan cost reduction by looking at the entire cost structure.

Firms should review payroll, sourcing, IT, business processes, and opportunities to combine and share services, Mr. Trowbridge said. The resulting plans may still involve workforce cuts, but only after the company has evaluated its long-term strategic business processes.

With a plan that looks ahead, Mr. Trowbridge said, companies grow stronger, fewer employees may be laid off, retained employees are better prepared and less emotionally scarred, and displaced employees are more humanely re-deployed. 

The end result, said Mr. Trowbridge: an American economy better prepared for the recovery when it comes, a workforce better prepared for unemployment and re-employment, and a smarter, more humane approach to aligning business costs with an economy that will generate less business for the foreseeable future. 

For more information on outsourcing advisory services, contact Alsbridge at 214-696-6410 or visit www.Alsbridge.com.  For more original research and insight on outsourcing topics, visit www.OutsourcingLeadership.com.

About Alsbridge

Alsbridge, Inc. is an award-winning global advisory firm, providing unparalleled expertise in outsourcing, shared services, and benchmarking. The firm is fact-based and client-focused, with a proven methodology that fosters success.  Alsbridge defines client goals and scope, finds the best cultural fit with providers, refines the best solutions and eases transitions and implementation. Founded in 2005, Alsbridge is the proven, effective difference. For more information, visit www.alsbridge.com.

Contact:

Don Montgomery

Alsbridge, Inc.

(214) 696-6410

mailto: don.montgomery@alsbridge.com

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