Yesterday, we discussed the downside to laying off employees. It often is a short-term fix at a substantial long-term cost to your business.
But when business turns south (62,000 jobs were lost last month), what alternatives are there?
Michigan-based Pro-Temp Inc. co-owner Cal Van Hemert started snipping away at expenses at the heating, cooling and refrigeration service company.
He replaced the company's formal holiday dinner with a pizza lunch, restructured to get more people into the profitable sales department and is debating whether to trim benefits for his 14 employees.
Cross-training employees in multiple roles can add efficiency with no additional cost.
Employees might agree to sabbaticals, unpaid vacations, lowered salaries, even work furloughs.
415 Productions offered either an overall 5 percent pay cut, or a four-day work week reflecting the appropriate decrease in pay.
Charles Schwab Corp. guaranteed a $7,500 bonus for any affected employee who gets rehired within 18 months. In addition, company founder Charles Schwab and his wife created a $10 million educational fund for these workers. The fund will cover as much as $20,000 worth of tuition over two years at accredited academic institutions.
Your most important investment is in human capital. The cost of turnover is significant.
Thanks to salary.com and themorningcall.com.