Question

Starbucks

select among the nine factors to reduce a labor surplus

what options could the company use to respond to excess staff beginning in March 2020 to reduce its workforce due to the pandemic? Discuss at least five factors through available resources.  

Answer 1

COVID-19 pandemic outbreak has literally affected almost all businesses in the world, Starbucks is not an exception to it. Companies are thinking of options to reduce the labor surplus that they have as a measure to survive in these turbulent periods.The following are the options that Starbucks could use to respond to excess staff beginning in March 2020 due to the pandemic.

1. Transfering idle staff.
2. Reduce working hours.
3. Reduce compensation.
4. Hiring freeze
5. Termination of contract employees.
6. Voluntary Unpaid Leaves
7. Mandatory unpaid leaves
8. Voluntary separation package
9. Mandatory separation package

Among these options to reduce the problems associated with the labor surplus, the following are most suitable for Starbucks.

Transfering idle staff

The company could deploy the excess staff in a shop with reduced business to a shop with comparatively more business.

Reduce compensation

The company could reduce compensation by way of reducing bonuses, commissions, grants, and other incentive payments, etc.

Termination of contract employees

The company could reduce contract or leased employees without many procedures.

Unpaid Leaves

The company can grant either mandatory or voluntary unpaid leave to its employees, it helps the company in reducing the overall expenditure. The employees could hope to come back to the job once the crisis is over.

Separation package

Separation or early retirement package could be declared for reducing the excess workforce in the company.

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