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PEMD-85-6 1 (1985-07-24)

handle is hein.gao/gaobabfew0001 and id is 1 raw text is: BY THE U.S. GENERAL ACCOUNTING Report To The Director Office Of Management And Budget OFFICE Reduction In Force Can Sometimes Be More Costly To Agencies Than Attrition And Furlough GAO examined eight 1982 reductions in force (RIFs) in eight federal agencies. GAO found that when all quantifiable costs were considered, both budgetary and indirect, and when salary savings were assessed in relation to what could have been achieved by attrition, six of the eight RIFs were not cost-effective compared to attrition. When only budgetary savings and costs were considered, half of the RIFs were not cost-effective compared to attrition. GAO also found that in many of the eight RIFs, the number of employees who were downgraded was high and the costs associated with downgrading were substantial. In general, women, except in two agencies, and minorities, except in one, were overrepresented among employees affected by the RI Fs. However, some of the cases of overrepresentation were small. Overall, GAO found that agencies often resort to RIF as a means of reducing costs, although RIFs can cost more than they save. When they do, attrition is the more cost-effective strategy for reducing the size of the work force. Further, when RIF budgetary savings are small, furlough coupled with attrition may be an effective alternative for avoiding budgetary deficits. C) Mt GAO/PEMO-85-6 JULY 24.1985 IMW:~34/ / X L4 5

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