photo credit: Heart of Oak
Entrepreneurs everywhere are facing the difficult task of needing to start cutting pay roll. But many of them wonder which ones should be cut, how much should they cut and how can they make these necessary changes without too much damage in the work place. Below are a few guidelines to follow if your faced with the difficult task of cutting your pay roll.
â—Review your options. You don’t just have the choice to lay off people. Think about some other options such as a shorter work week, shorter hour’s, less paid vacation and sick time, full time into part time for a period of time.
It’s up to you to determine your business’s threshold. Every business has its own critical initiation point for its emergency action plan. The items you might want to consider are cash level (including receivables), inventory level, aging of outstanding bids, number of bids and backlog in hours or dollars. The point is, when you set an objective, measurable point of action, you remove some of emotional upheaval from the process.
â—Minimizing the damage. When making the cuts let your employees know that your sharing the cut’s along with them, remind them of the fact that there are much more disappointed people who are standing in the unemployment line rather then working part time at least.
How have you handled your pay roll cuts in your business?