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HR Glossary

HR terms frequently used by HR professionals.

Right-sizing 

What is right-sizing?

Right-sizing is the process of restructuring a company to make profit more efficiently and meet current business objectives.

Why do organizations implement right-sizing?

The primary goal of right-sizing is to mold the organization into the best size by paring down the workforce and reorganizing management to find the optimum staffing level, ensuring employees with the rights skills are in the right positions for increased cost-efficiency and productivity.

Does right-sizing only mean reducing the number of employees?

The process of right-sizing includes more than just reducing the number of employees. It forces an organization to re-evaluate its business processes and rewrite its business plan according to the current business opportunities. Right-sizing ensures the workforce is efficient, enabling the organization to achieve its new business objectives.

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