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Is layoffs the right answer to the current economic slowdown - Role of HR Professionals

The current economic slowdown requires organizations to reduce costs. A blanket solution adopted by many managements has been to lay off employees. Although this may lead to short-term savings of 3% to 4%, the organization is sacrificing its only appreciating assets in the process. 

On the other hand, an organization can achieve savings of 15% to 20% by implementing the Lean Six Sigma Management System. Today, 53 % of Fortune-500 companies are using Lean Six Sigma and that figure rises to 82% when we look at just the Fortune-100 companies. In fact organizations like GE (General Electric) have mandated that all management level persons have to be at least six sigma green belt qualified.

Needless to mention, all efforts to introduce Lean Six Sigma have to begin with training at senior and middle management levels. HR professionals can make a major contribution to their organization’s profitability by achieving greater delivery efficiencies and improved operational performance through Lean Six Sigma training and implementation.