Part One of  Two Part Series -

especially in Alberta where the impact of oil and gas expands far beyond the major industry players. A weak economy doesn't have to spell disaster for companies, large or small. When armed with appropriate strategies, companies can weather the storm and emerge even stronger once things have settled.

These 6 downsizing strategies can help companies to adjust their workforce in a number of innovative and effective ways. The best part of several of these strategies is they allow companies the opportunity to reduce their workforce when needed while still retaining top talent. We have broken the article up into a two-part series to keep it at a more readable length and allowing us to be more complete in our insights.  So here it is Part One; "Weathering the Storm" Strategies 1 thru 3

Alberta companies in the resource sector are used to ups and downs. For this reason, they have a high percentage of contract workers. This strategy assists greatly in workforce planning, especially when adjustments are required. When times are tough, the contractors are the first to go. When the economy strengthens, contractors can once again be blended into the workplace plan. Contractors are relatively easy to downsize. They often have fixed duration contracts and do not qualify for benefits. In times of rationalization, smart sizing, and downsizing, those who work on contract are typically the first to be laid off. The effective and prudent employment of contractors plays a vital role in the Alberta resource energy workforce planning process.

Contractors, Staff on Improvement Programs, Staff in Redundant Departments In terms of layoff sequencing, contractors are often the first to be affected by job cuts. It can be more difficult and costly to reduce full time staff. Full time staff typically have benefits and severance provisions that must respected. More importantly, full timers have important intellectual capital that the organization knows it needs to be successful over the long term. For these reasons, wherever possible companies may choose to offer full time employees time off, reduced and flexible work hours, telecommute options, sabbaticals, or the opportunity to take time off to upgrade their skills. This strategy can help to reduce the workforce as required without permanently severing the employment relationship.

Among the early full time casualties may be employees whose documented performance has not been satisfactory or is under formal review. Those with Personal Improvement Plans are an easy target for employers seeking rapid workforce reduction.

Often, entire departments are made redundant by the cancellation of major projects or through mergers and acquisitions. It makes sense to review these areas for workforce reduction since a lack of work directly reduces staffing requirements. On the flip side, this can result in severe staff shortages once projects increase since an entire department may be required in short order.

Studies have shown that the best performing companies do everything possible to retain their knowledge and skill base during difficult times. This strategy is based on the presumption that eventually energy prices will rebound. The company will be ready to meet the needs of the market if they maintain an extremely competent employee base. For this reason, organizations will transfer key full time staff to other full time vacancies. Lateral transfers to vacant positions often provide a way to retain key staff while cross training staff and increasing their organizational knowledge base at the same time. The career lattice path is proving to be a more robust workforce planning model than the normal corporate ladder which often creates so many twists and turns that some have termed it the “Snakes and Ladders” model.

We hope you have enjoyed Part One: "Weathering the Storm" and return on April 30th 2015 for Part 2 Retainment through Engagement, the conclusion of "6 Downsizing Strategies for Alberta’s Energy Sector" Please enjoy, comment and share.