How to Reduce Labor Surplus Effectively in a Company

What strategy can be used to reduce a labor surplus in a company?

A) hiring freeze

B) downsizing

C) demotion

D) overtime

E) pay reduction

Answer: Bob plans to use a hiring freeze strategy to reduce the labor surplus at his company.

Bob, an HR manager at Delair inc., is anticipating a labor surplus at the end of the company's fiscal year. In order to effectively reduce the labor surplus, Bob has decided to implement a hiring freeze strategy. A hiring freeze is a strategic approach where companies temporarily suspend the process of hiring new employees.

By implementing a hiring freeze, Bob can successfully manage the size of the workforce without resorting to layoffs or other drastic measures such as downsizing, demotions, or pay reductions. This strategy helps to minimize the negative impact on employees while effectively addressing the labor surplus issue.

Overall, a hiring freeze allows companies to control their workforce and make necessary adjustments without causing additional stress or suffering for employees. It is a proactive and effective approach to managing labor surplus situations.