Search topics


What is Rightsizing?

Rightsizing is the process roadmap towards the achievement of business objectives by way of right-sizing the number of employees you have in your company. It is often confused within the two domains downsizing and rightsizing, though it is far from the reality, both are different having a few similarities.

When you reduce your human resource for cutting cost purposes like to save money upon salaries payment and increase profitability instead, yes it is downsizing. On the contrary, when you limit your human resource to a particular right number to attain your business goals, this is rightsizing indeed.


What is the difference between Rightsizing and Downsizing?

The two concepts are usually confused! Downsizing can be caused by economic downturns like recession or the pandemic we recently had of COVID-19. Whereas the Rightsizing never always meant to be reducing the number of employees that are cutting the size to a right one at possible levels of the organizational setups to reach certain strategic business objectives instead. Rightsizing is sometimes defined as redefining the job descriptions instead of replacement of human resources or firing employees.

Rightsizing in the workforce entails the right skills sets, equipment, and environment provision at times rather. Or the newcomers may come into the existing workforce strength of your human resource battalion to add, share and teach your existing employees the expertise, knowledge, and experiences requisite to cope with the market uncertainties in turbulent times of the business world.

The rightsizing activity analysis is the rightsizing is carried on at all organizational tiers that are: lower, middle, and upper management levels. It is that the rightsizing is a result of several marketing conditions and some external factors. If buying power diminishes due to inflation, it may decrease the graph of your market demand of services required, hence you go for right-sizing instead to limit your production facility to a certain number of employees and produce units as per lower demand – hence, the supply lowers as well.


What are different Methods of Rightsizing?

Following are the types of rightsizing:


How fast and accurate an employee performs a job. It encompasses:


The ratios are taken into consideration for restructuring purposes like materials used, sales grabbed, and labor input. The variables to consider here are:

Analysis of Drivers

Simple analysis of what is the driving force behind success. For example, any advertising company can look into the number of adverts and the team it has to meet the requirements of the existing market conditions. Similarly, the possible drivers behind the curtain teamed up are seen to go farther into the rightsizing.


Though complex, this method of rightsizing tells you what is the exact number of employees you need to perform success (like mathematical sums and models). Due to its time taking tenure methodology, this method is least followed by business organizations.

What are important steps in rightsizing? 

Following are the steps in right-sizing:

What are the benefits of Rightsizing?

Following are some benefits of rightsizing for employers:

Mentioned below are the benefits of rightsizing to the employees: