After many years scoping this problem in the office and administrative functions of business (including management) we’d peg the median level of excess employees at roughly 15% by headcount. And here’s one irony. These excess workers form bureaucracies that frustrate and anger customers while padding the payroll. Companies increase their payrolls to irritate customers. How lose, lose can you get?
Another irony is how companies best shed the excess labor: by letting customers design how they want companies to operate. Bureaucracy? Gone. Red tape? Gone. Redundant approvals? Gone. Poorly trained, inexpensive and disempowered workers that require excess supervision and approvals? Gone. Excess executives? Gone. Even unwanted promotion and sales pressure, gone.
So why are companies taking these steps so scarce?
BTW, I feel for the employees initially affected. We often find ways clients can put them to productive use. But getting employees doing the RIGHT WORK the right way will increase U.S. competitiveness globally, and that quickly offsets jobs lost initially.