Advantages

1. This method removes the issue of being bias towards specific employees.
2. This method does not encourage employee discrimination.
3. Within this method, employees are retrenched based on seniority. The seniority based
job layoff process is more objective as it protects those who have invested majority of
their time and effort within the organisation.
4. It is assumed that the longer an individual works for the organisation, the more
experience is obtained therefore the individual is more productive or efficient than the
individual with lesser experience.

Disadvantages
1. The workers laid off based on the last hired first fired system could be efficient and
productive than the workers of senior position.
2. Last in fist fired system lead to more jobs lost. As these employees are laid off due to
budget cuts.
3. Some of these employees might end up losing their homes due to non-payment of
mortgage and utility bills.
4. Issue of more than one person being sent home from the same household.
5. Unemployment rate will go up.
6. Both government and employee will lose income. For instance, the government will lose
the income gained from the retrenched workers income tax payments and have to pay
NIS unemployment benefits. The employee will lose the steady monthly income but
replaced by unemployment benefits for a period of 6 months.
7. The employees with less experience are not given the opportunity to excel like the senior
employees.


Recommendations
1. It is recommended to have a generational balance within an organisation. For instance,
the last in, first fired system segregates the employees based on seniority. With that
being the case, the newer employees with the least experience are laid off while the
employees with the most experience are kept. An organisation needs a well-balanced
environment with a mixture of employees with different levels of experience. As by
keeping only the senior employees, the organisation would eventually run into problems.
For instance, being a senior employee does not necessarily indicate that this individual is
more productive and efficient than the employees with the least experience. Therefore
the organisation must have a combination of both senior and less experience employees.
2. The system of last hired, first fired should be abolished and a new strategy should be
implemented. One strategy that should be highly considered is being retrenched or laid
off based on based performance, productivity and efficiency.
3. Have a system implemented for the retrenched workers.
4.