What does it mean to compress human resources?

Compressing human resources is to reduce costs and improve profits by cutting unnecessary human input while maintaining the operational efficiency of enterprises. Common ways to reduce human resources include layoffs, reducing recruitment scale, reducing overtime, and adjusting employees' wages and benefits. However, it should be noted that excessive compression of human resources may lead to the lack of sufficient manpower for enterprises to achieve long-term development goals, and even affect corporate image and brand.

With the increasingly fierce market competition, more and more enterprises choose to compress human resources to improve their competitiveness. For example, an enterprise has improved employees' job satisfaction and production efficiency to a new level by reasonably adjusting employees' salaries and putting an end to unnecessary overtime. At the same time, some enterprises will also choose to eliminate some employees who do not meet the core values of the enterprise to maintain the consistency of the development direction of the enterprise.

Enterprises need to consider the balance between employees' rights and interests and the long-term development of enterprises while compressing human resources. For example, we should ensure that the layoff plan will fully consider the livelihood and future prospects of employees to reduce the negative impact. At the same time, enterprises should also attach importance to employees' training and promotion opportunities, encourage employees to improve their own abilities and enhance the attractiveness of enterprises, so as to better maintain the quality and stability of human resources.