LO 5-3 Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage. ∙ To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting. Also, the organization may lose some of its best employees.∙ Transferring employees and requiring them to share work are also fast methods, and the consequences in human suffering are less severe.