Hold Your Fire
You can save your company without laying off all your employees. Try these options.
Even if you've stumbled onto hard times, the last thing you
want to do is lay off your hardworking and dedicated employees. The
good news in this not-so-good economy is that layoffs are no longer
your only option. Here are a few increasingly popular alternatives
employers are adopting to ease the payroll burden: - Cut salaries. This
one's a gamble: While an across-the-board salary cut can hurt
morale and may cause some employees to look for greener pastures,
it can also keep your company afloat. Be sure to first check any
bonus or compensation agreements you've entered into with
employees.
- Offer early retirement
packages. You can give people a chance to voluntarily
leave your ranks, but you can't slant your retirement roster
along gender, age or department lines. "Be consistent in whom
you're offering early retirement to," says Jonathan Levy,
an employment attorney with Fair Measures Corp. in Santa Cruz,
California.
- Connect performance with
salary. If you structure employees' compensation to
reflect their performance, you'll have a built-in adjustment
when the business isn't doing so well: "Employees
automatically get paid less," says David Goldstein, a labor
and employment attorney with Faegre & Benson LLP in
Minneapolis.
- Shorten the workweek/offer unpaid days
off. These strategies have been tried with limited
success, in both France and the United States. If you have no
contractual agreements with employees, it's legal, says
Goldstein. Sending nonexempt or unionized employees home can be
tricky, though-check with the specific laws of your state before
proceeding.
- Train a flexible staff.
Running a versatile ship, where employees are cross-trained in
various jobs, can help during tough times, suggests Goldstein.
"Then you can reallocate resources when you need to," he
says.
Whatever option you choose, conserving cash and avoiding legal
landmines are your primary goals. Consult a lawyer or HR expert
before putting your plan in motion. Contact Source Content Continues Below
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