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Options Outside of Termination
photo credit: Matt McGee
Everywhere we look we see how the unemployment stat is going up everyday. Granted, sometimes it is necessary to let people go, but what if you have all great employees with great production under their belts, but the economy just keeps working against you? Below are a few options for you other then termination.
Call a meeting with all of your staff, this can be either a large all in one group or by departments if you choose. Lay out all of the financial matters on the table for everyone loud and clear, let them know there are some difficult changes that are to occur if the company is going to survive.
Include the employees on the different options that you have come up with in order to continue the company. They are more opt to be calm and helpful if you make them a part of it. Discuss pay decreases, decreases in health benefits or paid sick and vacation times. Mention the possibility of decreasing hour’s or employees being moved to part-time status.
Layoffs and terminations can have a devastating impact on a company, with repercussions lasting a long time. A cohesive organization that’s concerned for the well-being of others is often willing to sacrifice something of its own to help ensure the viability of the company.
Do you have suggestions on actions other then termination that a company can take?
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Jason Monastra on April 2nd, 2009 8:43 pm
There are actually quite a few options when the company really looks at things from an enterprise perspective. Larger companies normally do not employ the methods listed below, however small and medium size companies are more willing to look at the whole picture and try not to layoff employees when possible. Take a look at these:
1. Reduce overall salaries by 10%, everyone on staff including leadership.
2. Remove bonuses for the current year, or reduce them significantly if you are in a high commission environment.
3. All travel and non-essential spend is removed.
4. Company stops paying for cell phones for employees. Most people do not think about the impact…..in a 200 person company that bill is normally in excess of 20k a month or 250k a year. That is a few people’s jobs that are not getting cut now.
There are a number of things that can be done depending on the situation and the people involved. If all parties are willing to work at it, the options are limitless and you can normally make it work. But when the directive comes from the top, leaving nothing for the people in the trenches to do except wait in fear of the impending pink slip – that is when things are bad.
Darren on April 3rd, 2009 10:34 am
If your company is a public company:
1. Allow the company to be part pay staff in employee shares. This works well for Microsoft employees.
2. Employees will make cost savings if they have a vested financial interest.
3. Have and employee awards submission scheme where the prizes are paid in employee shares.
Make the company environmentally friendly and save costs through:
1. Turning off lights in un-used offices.
2. Turning off office equipment that is not being used for a significant time such as computers and printers.
3. Use scrap paper for phone messages before recycling.
4. Save on travel costs by doing phone or web conference/meetings.
5. Plan tasks/client visits so that you can do multiple things when visting the one area to save on fuel and vehicle maintenance costs.
6. If possible do sales via virtual conferencing this saves on venue costs and time. It is also more powerful and time effective to sell to a group of clients than on an individual basis.
7. Do staff and client training courses via virtual conferencing.
8. Help other business and staff by setting up exclusive offers and discounts for staff through other companies ie./ holidays, child care facilities, restaurants etc. What you give out also comes back to you in referrals http://www.bniteam.com.au
9. Pay your staff regardless of who they are a spotters fee or commission for getting new business for the company.
10.Do what Caterpillar in America did instead of laying off 300 staff they paid them to do community project work for 3 months. The local radio station heard about it and promoted it and Caterpillars sales increased by around 7 times. Needless to say they kept those 300 staff. Givers Gain, yet again, http://www.bniteam.com.au
11. Think outside the square because laying off staff effects client and investor confidence and we know were that leads. Get everyone in your company a copy of ‘Six Thinking Hats’ written by Dr. Edward De Bono. Get them to read it and then ask them to solve some of the companies issues.
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