Cut Other Expenses
Look for other ways to reduce cost. Organizations
spend millions of dollars on raw materials, energy, and supplies. Why not put
some effort into reducing some of these costs before resorting to layoffs?
Increase Revenue by Selling Non-core Assets
Instead of eliminating employees, sell parts of
the business that are not critical to its success.
Become an Outsourcing Center
Establish long-term relationships with
organizations that may temporarily need your talented workforce. These could be
organizations that are busy when you or not.
Also, explore selling the services of your support
staff, engineers, and supervisors to other organizations on a temporary basis.
Your employees would gain valuable experience, bring revenue in to your
organization, and be available when your business picks up again. This can be a
Many organizations are often hiring in one part of
the organization while laying off in other parts. Wouldn't it make sense,
instead, to retrain your loyal employees so that they could perform other types
of work for you? This would save the costs associated with both laying off
employees and hiring new ones. It would also enable employees to expand their
skill set. This is another win-win situation.
Offer Flexible Work Arrangements
Many employees are eager to work part time rather
than full time. Indeed, they accepted full time work only because they could
not find a part-time position. Wouldn't it make sense to offer this possibility
to existing employees rather than just assume they would only want to work full
time? Indeed, in many cases, employees can perform most of their valuable
functions while working only part time. This could be yet another win-win
Many organizations schedule temporary plant
shutdowns when work levels decline. This is a less drastic measure than a
layoff. Although pay is often suspended during the shutdown, employee benefits
Cut Executive Bonuses
Other organizations have temporarily suspended
executive bonuses in order to prevent widespread layoffs. Few would argue that
senior executives should shoulder some of the pain when their business is