El Eram Inc.is automating processes so the company can meet its demand with a smaller workforce.The CEO asks Monica,the vice president of human resources,for advice on how to address the resulting labor surplus.Monica studies the workforce and observes that many employees are in their 50s and 60s.Furthermore,these employees are the highest-paid workers in every job category.Based on this information,what should Monica suggest as the most effective way of addressing El Eram's labor surplus?
A) The workforce should be downsized,with layoffs focusing on the older employees.
B) Retrain the older employees in order to make them to work more productively.
C) Provide performance-based pay to increase production output by the employees.
D) Replace the employees with contract workers.
E) Offer early-retirement incentives to the employees in their 50s and 60s.

Question

Quizplus · Accepted Answer

Based on the information provided, offering early-retirement incentives to the older employees would be the most effective way of addressing the labor surplus. This would allow the company to reduce its workforce without having to resort to layoffs or replacing employees with contract workers. Additionally, it would likely be more appealing to older workers who may be thinking about retirement anyway, and would help avoid potential legal issues related to age discrimination.