You know what we’re looking at right now – 6 – 9 months of tough(er) times, depending on which of the economists and prognosticators you listen to. No matter the brilliant oracle, we know we’re in for a siege of cutting costs and keeping focused on the bottom line.
So, the thought often occurs to us that we need to cut staff – layoff a few people and get by with less payroll.
If that’s where your thought patterns are taking you right now you might want to consider these three things:
1.0 Layoffs can lead to higher turnover. When employees feel less loyalty, they give less loyalty. They start to wonder if they are on a sinking ship and should they be looking for a ticket off the Titanic…
2.0 Layoffs affect productivity. It’s hard to be productive when you’re worried about your job and your employees might be afraid that they’re going to get stuck with all of the extra work that might come from the people who just got laid off.
3.0 Layoffs are stressful for everyone. Employers have sleepless nights, employees get the jitters and everyone is headed for a major work migraine. Stress is a fact of work like, but having your work buddies heading out the door is tough for everyone.
So, what to do if layoffs have to be part of the solution? Try these on for size:
1.0 Ask your employees for cost cutting measures – you might be surprised what they come up with for you.
2.0 Communicate frequently about what’s going on and how long your company can handle the current situation.
3.0 Conduct Scenario Planning and share the back-up plans with everyone.
4.0 Stay positive, pragmatic and take extra care of yourself and your people. It’s good to have a business coach or colleague outside of the company who can be a sounding board for you.
Layoffs won’t be the worst thing that can happen in this business cycle, but it is tough and we’re here to help you if you need some navigation through the choppy waters.
Karen Young, HR Resolutions