Employee Displacement: Evidence from Perm Companies

Today a lot of companies use employee displacement to reduce personnel costs. However this instrument implication brings both : benefit and negative effects. In some cases these effects can overbalance benefit from employee displacement and reduce it to nothing. Insufficient knowledge of employee displacement nature makes it impossible to create practical instruments for reduction of the negative effects mentioned. The general purpose of the research is to identify specific features of employee displacement as a process. The investigation is based on combination of interview and questionnaire survey. Following the results of investigation, graphical schemas of employee displacement as a process were created for all the 11 Perm companies investigated, then a general schema of the process mentioned was presented. Within the investigation were identified three key negative effects of employee displacement and suggested a way to neutralize them. The results of the present investigation will be published in a scientific magazine, which will make them available for all the managers who are interested in the topic mentioned.