2009/2010 HRINZ HR Initiative of the Year Distinction Awards

NZ Post Retail

In a year of recessionary cost cutting, and widespread multi-sector redundancies, NZ Post Retail's Workforce Planning Strategic Initiative stands out as a good news story about how an organisation can significantly reduce workforce costs in a way that minimises the need for layoffs.

The Workforce Planning Strategic Initiative was run as a multi-disciplinary change project aimed at optimising workforce numbers in the Retail Network of Postshop Kiwibank stores.  The project was so successful that it achieved triple the targeted savings in workforce costs.  Not only this, it was implemented in a way that ensured both staff and customer satisfaction measures also improved at the same time workforce savings were achieved.

While it is common for businesses to downsize, and manage their workforce via roster methods, the approach taken in this instance was unique, and demonstrates that there are alternatives to the blunt axe approach of flat percentage based staff cuts.  Additionally, the disciplines applied through this initiative have resulted ina high level of workforce planning capability being developed int he business which will sustain the savings over time, and importantly, help the health of the business, thus minimising the chance of significant staff cuts being required in the future.

This whole system approach to implementing change, and the very positive outcomes the project was able to achieve and sustain, make this a worthwhile case study.