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How Not To Fire People
By Bizbox
As with our importuning you to go green, you may initially respond to our plea to do what you can to avoid laying off any employees with a little bit of skepticism. We will do what we can in good times, you may say; the current economic situation, on the other hand, requires any means necessary.
But, as Independent Street argues in a helpful post, lay-offs may more than ever not be in your interest: they require a ton of paperwork and usually a little bit extra immediate cash--think severance, think unemployment benefits--when you really don't have the time or cash to spare. And, of course, they are absolute morale-killers, and right now you need to squeeze every last drop of productivity out of your employees.
Okay, you say, but you still really are hurting, and if now maybe isn't the time for lay-offs, it's also not the time for business as usual. What do you do? Some suggestions:
Freeze new hiring. A no-brainer, but still, don't forget to do this for a time even if it is apparent that you do, eventually, need to shed employees.
Cut time/cut benefits. Whether its fewer hours per week or unpaid vacation days, cutting paid time is a way to save cash on payroll without wrecking morale. This is an especially good idea if you determine that the economy and your industry are such that the next serveral months are a time just to hunker down and survive--you're less likely to miss the extra man-hours, if so. Cutting benefits is a more straightforward to make your payroll more affordable without letting anyone go.
Offer buyouts. This is especially popular with newspapers (er, especially right now, as advertising revenues have plummeted.) It does cost a bit more cash up front, but it saves you in the long run, and shouldn't substantially harm morale.
A thing to understand is that your employees aren't dumb (well, hopefully not). They know what kind of economy we're in, and are looking at for the next several months; they understand the position you're in. You'll probably be surprised just how willing to work with you (literally) they are, as long as you are clearly always conscientious of their needs and their morale. So ultimately, do what's necessary. But do it wisely.
Comments (0)October 29, 2008 6:21 PM
