In class we discussed HR's responsibility to forecast the demand and supply of the labor market and how it is similier to the demand/supply for any other product or service. When the labor market is in surplus, employers can pay low wages because people are unemployed and are willing to get paid less for a job. On the otherhand, if the labor market it low, employers have to pay higher wages in order to get qualified workers to consider working for them.
We also talked about the options a company has to reduce a surplus.
-Downsize
-Pay reduction
-Demotions
-Transfers
-Work share
-Hiring Freeze
-Natural attrition
-Early retirement
-Retraining
While some of these are faster then others, the faster they are usually results in a larger amount of suffering from the persons involved.
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