What is cost-benefit analysis in redundancy planning?

Can you explain what cost-benefit analysis is in the context of redundancy?

Cost-benefit analysis in redundancy involves evaluating the financial implications of reducing workforce versus the potential savings.

What factors should be considered in this analysis?

Key factors include severance costs, potential savings, impact on productivity, and the long-term effects on company culture.

How do you calculate the costs and benefits?

You calculate costs by adding up severance, training, and hiring costs, while benefits include savings from reduced salaries and overhead.

Are there any risks associated with this analysis?

Yes, risks include misestimating costs, negative employee morale, and potential loss of valuable talent.