The attached report, requested for the Human Resources Oversight Committee May 25, 2012, describes the fiscal and health related employee and organization costs involved in decreasing full-time equivalencies (FEET). I believe that you will find the results of the research useful in determining all risks and benefits inclusive to decreased workforce and increased individual workload.Research for this report was designed to focus on the impact of decreased Fetes in the following areas: * Workforce health and well-being * Workplace morale and productivity Potential additional organizational costs related to decreased workforce * Management techniques to use if downsizing in the workplace is inevitable Primary research consisted of a workplace survey of three areas: Administration, Clerical Staff, and Frontline Staff.Secondary research sources included government publications, peer reviewed periodicals and books and additional online resources. I would be happy to further discuss the report findings, conclusions and recommendations at your request.

Thank you for your support in allowing complete and comprehensive research regarding the risks involved in workforce reduction. The information provided will be beneficial in further staffing determinations at the facility.The reduction of workforce and Full-Time Equivalencies (FEET) is often thought to be a strong action in meeting budget expectations; however, multiple underlying organizational and personal costs can be involved.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

All cost aspects should be reviewed when determining it workforce reduction is the most fiscally and organizationally responsible action. Organizational distrust, increased personal and organizational health care expenses, lost days of work, and decreased productivity can result.Conclusions reached in this report regarding the potential organizational and employee risks versus benefits to decreased Fetes, are based on tat obtained by: personal interview, survey, peer reviewed/scholarly periodicals, books, and internet resources. Review of the data showed risks to both organizations and employees when Fetes are reduced and individual workload is increased. The data also suggests that effective leadership can decrease the impacts to both the organization and employees in situations when decreasing workforce in unavoidable.

Employee Health/Well-being.Effects on employees’ health and well-being following organizational downsizing can be both mental and physical. Increased workplace stress has been linked to illnesses including: depression, hypertension, leap disorders, and cardiovascular disease. Employees often have distrust for the organization and resentment for the resulting increase in workload. Decrease in morale can result in poor commitment to the organization and decreased productivity. Organizational Costs. The attempt to reduce budget expenses by eliminating Fetes can have additional substantial organizational costs.Primarily additional healthcare expenses; however, employees’ days away from work related to stress, are an additional cost incurred as well.

Workers who report being stressed at work incur health care costs 46 percent, or an average of $600 more per person ACH year (Schwartz, 2004). A study conducted in 1997 showed that employees missed and average of 23 days from work when the leave is stress-related (Webster & Bergman, 1999). Organizational distrust, low employee morale, and increased individual workloads can result in decreased productivity and quality.

Effective Management Skills. Effective leadership and communication skills are essential when organizational downsizing is inevitable. Communicating to employees regarding impending changes alleviates anxiety involved. Showing organizational foresight and strategic planning maintains a collaborative work climate. On the basis of these findings, it is evident that organizations must look at all aspects involved in workplace reduction to ensure a productive and successful environment.Leadership must have proper tools and training to be prepared for any organizational crises INTRODUCTION: EFFECTS OF FEET LOSSES ON ORGANIZATIONS AND WORKFORCE Research was conducted to analyze the risks versus benefits of decreasing organizational Fetes to meet budget needs. The focus of this research is to determine if decreasing Fetes is an effective and efficient way of meeting organizational budgets. The research intends to answer the following questions: * What are the costs/risks to individual employees following organizational downsizing? What are the organizational costs/risks relevant to workforce reduction? * * What Leadership strategies should be utilized if workforce reduction in unavoidable and imminent? The current economic hardships faced by businesses require leaders to make difficult decisions to maintain an effective/efficient organization.

Analyzing the risks of decreasing workforce will help Leadership make decisions based on organizational needs and strategic plans. BACKGROUND: S In the present ay economy, business must look for effective strategies and tools to minimize spending and improve budget.Elimination of Fetes to meet budget goals and expectations may appear to be a strong action in reaching these goals. Organizational decisions to downsize are not without out risk or cost to both the organization and its employees. Employees remaining following downsizing may be left feeling overworked and overstressed with stress-related illnesses as a result. According to a study conducted in 1997, employees missed an average of 23 days of work, when time away is related to workplace stress (Webster & Bergamot, 999).The effects on employees’ health and well-being related to workplace stress carry with the employee beyond the workday. Stress-related illnesses can have lifetime effects on individuals.

Organizations in turn experience productivity below expected levels and additionally incurred organizational costs. There is a need for innovative strategies and effective leadership skills. Carefully looking at budget goals and effective strategies to meet the.

When a situation arises is which downsizing is imminent effective leadership skills are essential to maintain employee productivity ND morale This report researches the risks versus benefits of organizational reduction of Fetes on both the organization and employees. Additionally, essential leadership skills required for maintaining workforce trust and morale during crises are explored. The focus of the research is limited primarily to additional costs incurred related to increased workplace stress experienced as a result of increased workload.Limitations of this research are the individual perceptions of work-related stress and inference of stress contribution in work environment found in some of the research.

Recommendations are based on information found to be credible by extensive review of the source, content and relevancy. The use of primary and secondary data provided information for the results and recommendations of this report. Primary data was collected through a personal interview and a survey of three unique organizational areas.

The surveyed departments included : the Prosthetics Department, a primarily clerical department, Performance Improvement, a primarily administrative department, and the Medical Surgical Unit, a frontline patient care department. The areas surveyed were chosen due to recent staffing reduction or changes. Secondary data was collected to provide peer reviewed/scholarly data and recommendations regarding the potential costs and risks associated with reducing Fetes to meet budget needs.Sources included scholarly Journals, periodicals, books, government resources and credible online sources.

Information was reviewed to ensure credibility and relativities to the research topic. The source diversity is to ensure the information provided is off factual unbiased nature, and relevant to organization in making future organizational edged and staffing decisions. KEY TERMS The purpose of this report is to provide useful information and data regarding risks versus benefits of decreasing the workforce to meet budgetary needs.Information provided is intended to be a tool to determine appropriate actions for both the organization and employees in economically challenging times. The following key terms are used throughout the report and a definition is provided to ensure readers are able to fully interpret the data provided.

Full-time equivalencies: The United States Federal Government defines full-time equivalencies (FEET), as the number of total hours worked divided by the maximum number of compensable hours in a full- time schedule I. E. N individual working 40 hours in a work week is one FEET (US Office of Management and Budget, 2009). Risks versus benefits: The comparison of the risks associated with an action to the perceived benefits of the action. Downsizing: Reducing the number of employees on an organizational payroll. Workload: The amount of work expected or assigned to an individual in a given time period. Mental Health: State of emotional and psychological well-being in which an individual is able to use his or her cognitive/emotional capabilities.

Increased workload due to decreased staff has been shown to cause increased stress levels in employees. Increased stress levels when they become excessive can leave to lost days of work and therefore decreased productivity. A survey of 1 5 employees in three areas of the VAMP asked questions regarding the current departmental staffing, workload and stress (Appendix B). Additionally the survey asked for information regarding time away from work for perceived stress- related illness. The three areas surveyed were unique in staffing and workload.Areas included a clerical department, Administrative department and Frontline Patient Care department. Areas were chosen because there have been known staffing cuts and or turn-over. Fifteen of Fifteen individuals surveyed reported increased duties and assignments due to staffing.

The average number of hours worked per week was 47. 5, with individual reporting average of five hours of work completed each week at home. Three of the fifteen individuals surveyed reported missing greater than five days of work in the past twelve months for stress-related illnesses.Fourteen of fifteen individuals surveyed reported feeling is if they did not have adequate time or tools to complete their assigned work tasks. The findings indicated that the employees perceived their ability to perform their Jobs to the organization level as suboptimal.

In addition to time lost from work and decreased productivity, organizations are faced with higher healthcare and workers’ compensation expenses. Workers reporting high levels of stress have 46 percent or approximately $600 more per person in health care costs (Schwartz, 2004). Claims of workers’ compensation elated to workplace stress injuries also continue to rise.By 1995 approximately one half of the states allowed workers’ compensation claims for emotional disorders/ disabilities related to workplace stress.

From the years 1982-1998 there was a 700% increase in stress- related workers’ compensation claims. The national average awarded for compensation of stress related illnesses is, $3,420. This increase in claims has resulted in double digit in workers’ compensation premiums each year (Brock & Buckley, 2012).

The current state of the economy may create situations in which reductions of Fetes is he only feasible option for an organization.In situations where elimination of workforce is imminent, effective leadership is essential for the transition. The financial results of downsizing have been found to be mixed at best.

A 10 percent reduction in workforce may result in a cost reduction of 1. 5 percent (Mishear, Sprinter & Mishear 1998). With the potential for minimal cost savings returns, maintaining a strong leadership to employee relationship is imperative to organizational success. Making tough decisions and maintaining employees respect is best done by being