Marcus and Olivia are HR managers at Tacoma Investments. They are expecting a labor surplus over the next two years resulting in the organization having 24 more employees than required. Typically, two employees leave the organization each month. Which HR strategy should Marcus and Olivia consider, taking into account the length of time they have available?

A) downsizing
B) natural attrition
C) pay reductions
D) demotions
E) transfers

Question

Brandy De Oliveira · Accepted Answer

Final Answer : B, Explanation :  Given that the organization will face a labor surplus over the next two years and two employees leave each month, natural attrition would be the best HR strategy to consider. Natural attrition is a process where an organization reduces its workforce by not replacing employees who leave the company. This would allow the organization to gradually reduce its workforce without the need for layoffs or other drastic measures. Given the length of time available, natural attrition would be a more feasible option as opposed to downsizing, which may require immediate and often drastic actions. Pay reductions, demotions, and transfers may not address the labor surplus and may lead to employee dissatisfaction and turnover.

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