Termination vs. Work Force reduction – How to meet Budget?

You are a manager of a clinical laboratory. Leadership has come to you and stated that, in preparation for the upcoming budget, each department must reduce its staffing model by 2.0 FTEs. The budget is due in 60 days. In addition, you have just hired two new employees who have been working for the past year and are good employees. Now you are at full staff. On the other side, you have two employees that are in progressive discipline at the written work improvement level. It has been difficult to assess if their behavior is changing.

What should you do?

This assignment is to write a PLAN on how you will meet the new reduction in staffing at the request of Leadership. In the plan discuss the current environment (you can be creative in presenting a scenario, for example- “it has taken HR and the department numerous months to get up staff and now that we are up to staff” or “meeting turn-around times and staffing to volume markers have been affected by staff shortages.” It is important that leaders understand that there are quality and or patient safety issues that have improved with the current budgeted staffing model.

1. Describe what are your options pros, and cons of each proposal: Workforce reduction and Termination.
2. Offer your recommendation: what would be the process for your recommended process:
a. Work force reduction – employee selection, options for other employment, outplacement, bumping.
b. Termination – what would be the steps in the termination process and why.

In addition, in your recommendation, include a plan for how you would communicate and shore up employee morale during this difficult time.