layoffsThe most direct method of re

layoffsThe most direct method of reducing the number of personnel is through layoffs. The employees who are to be laid off are typically given advance notice. Since layoffs typically produce a great deal of anxiety, the employees to be laid off should be named as soon as possible. In a union organization, layoff decisions are typically based on seniority as specified in the labor agreement. In a nonunion organization layoff decisions may be based on a combination of seniority and ability, At the time they are laid off, employees should be informed about any plans for calling them back to work at a later date. This information allows the laid-off employees to plan for the future. Great care should be taken in making layoff decisions to avoid age discrimination violations. Layoff decisions must not be influenced by the age of the employees.If the labor surplus appears to be a short-term problem, many organizations prefer to reduce the number of hours each employee works and keep all of its employees. Instead of continuing a 40 hour workweek, management may decide to cut each employee's wages and hours by a fixed percentage. About half of the states allow employers to pay partial unemployment compensation for employees who have reduced work assignments. This strategy, called shared work, allows employers to reduce everyone’s hours and wages and receive partial unemployment benefits to supplement their lost wages. An alternative strategy, called rolling layoffs, involves having workers rotate in and out of unemployment While they are unemployed, they receive unemployment compensation benefits until they are replaced by another worker who goes on unemployment. This strategy has the advantage of reducing the costs of turnover and keeping trained employees since they know their unemployment is temporary.