The evaluation of corporate survival verse layoffs is complex.
Coronavirus has shaken the business world. As a result, many employers are making tough staffing decisions. Businesses will recover at some point, so it is critical to stay focused on the big picture. Numerous employers are forced to furlough and layoff workers. In most cases, it is unavoidable and necessary for the short-term, but be aware, it could prove more costly in the long run.
Before reacting with layoffs consider all the facts, review very cost-reducing measures imaginable first. Evaluate your workforce needs for the next 60 days. Determine the right number of employees needed to get your business back on track. Think in terms of high-priority and the critical staffers needed to keep moving forward.
Consider these options:
A four-day workweek could reduce staff costs by nearly 20%
Cut everyone's work time in half (for a short time) to save jobs
Get a commitment for a pay cut from your senior leaders
Offer unpaid leave for all the people willing to take a “sabbatical”
Look at short-term reassignments with potential vendors
Enroll in the employer's Paycheck Protection Program
The goal should be to retain 100 percent of your workers. Loyal, highly skilled employees are experienced and it’s important to keep them if you can. Losing people means you lose their skills and specific job experience. And, they may be lost forever. To replace your experienced people in the future, will cost more. You incur additional recruiting, onboarding and training cost.
Small and medium-sized businesses may qualify for the federal loan Paycheck Protection Program. Develop a plan to leverage this Federal program; ask clients to cost-sharing with you, or think about short-term reassignments with willing vendors. These are alternative options designed to keep as many employees working as possible. The additional effort will be worth it in the long run.
There is a strong possibility this crisis lingers longer than many would like. Have a plan B ready. Be very sensitive to the employer-employee relationships during this high-stress time, conflicts now will be very costly. Remember, when the country comes back online, in general, there will be a mad dash by all companies to re-staff, in many cases at increased wages.
DaMar Staffing is prepared to help, advise and guide you in formulating a recovery plan to achieve your workforce goals. Call Tiffany Thompson at 317.566.8320.
DaMar Staffing Solutions takes an unconventional approach to recruiting and staffing solutions for clients. As a strategic partner, the DaMar team is constantly on the hunt for those rare people who are among the best at what they do. DaMar Staffing is located at 8900 Keystone Crossing, Suite 1060, Indianapolis, IN 46240.