Home | Contact | Advertising
Small Business, Information, Resources, Articles - SmartBiz.com
Members Login:
Sign Up Forgot?
SALES & MARKETING
Marketing Online
Email Marketing
Search Marketing
Selling
PR
ONLINE BUSINESS
E-Commerce
Website Creation
Productivity
Accounting
CRM
Web-based Software/SaaS
BUSINESS STRATEGIES
Case Studies
Smart Answers
Videos
Podcasts
Smart Blog
Human Resources
Management
BITS & BYTES
PCs & Online Equipment
Mobile Computing
Security/Business Continuity
Telecom/Office Networks
Small Business Products
FORUMS & RESOURCES
Free White Papers
Tools and Calculators
SmartBiz Forum
Legal & Business Forms
News Feeds
Featured Webcasts & Videos
Franchise Offers


 
SMALL BUSINESS AND STARTUPS INTERNET TECHNOLOGY RESOURCES
Search SmartBiz:
Forms and
Downloads
Free
White Papers
Special
Offers
SmartBiz
Blog
Free Email
Newsletters
Human Resources
Managing Lay Offs With Dignity
Email ArticleEmail Article
Print ArticlePrint Article
Increase Text SizeIncrease Text Size
Decrease Text SizeDecrease Text Size
Del.icio.us
Digg This
Bookmark and Share

By Liz Weber

With the potential for layoffs facing more and more companies, the realities of laying off great workers is confronting many business owners and managers: owners and managers who have never before faced this hard act. To help ease the pain for the employees being laid off, the owners and managers making the hard decisions, as well as those employees staying behind, I thought I'd share a 5 Step approach that may help you, your employees, and your business. It will not work for many of your businesses given union contracts, etc. but if it helps some others - use it.

Everyone knows the economy is uncertain and most employees are rightfully concerned about job stability. When people become nervous, the rumor mill kicks into high gear. We all know the rumor mill can destroy individuals quicker than many things. So if you haven't yet, start communicating now. Lay out clearly how your company is and will address future business slow-downs.

Step 1 - Hold a "State of the Business" meeting with all employees and let them know the current state of your business. Let your employees know what your plan is for lay-offs and how you'll handle lay offs if your company needs to resort to them. Share with your employees the following - or your own plan - for dealing with a slow down. The important thing is to communicate clearly the state of your business now and what will cause you to move to the next step.

Step 2 - Reduce management salaries. Should business start to slow down and you need to more proactively preserve cash and control costs, don't immediately lay-off the lowest paid, front-line workers. They're the people who do what your business is known for. Do what you can to retain them. Instead, consider doing what a few of my clients are doing:

Cut management salaries. Tell your employees this during your State of the Business Meeting. Let them know, you're working to protect the front-line workers' jobs, so the first wave of cost reductions will be borne by the management team. (One client cut all executive salaries by 15%; all mid-level managers by 10%.)

If you, like one of my clients, has a manager who "jokingly" asks, "But I'll still get my bonus won't I?" consider my response. "Absolutely. But first I want to sit in the meeting you're going to have with the employee(s) who will need to be laid off in order to pay you your bonus. I want to hear how you explain to them that you will still get your bonus while they lose their jobs. Once they give you the O.K., you'll get your bonus." (Yeah I know it's mean, but - duh. No bonuses.)

| 1 | 2 | Next page »
Add a Comment View Comments
Small Business Home

SmartBiz Shop
Promotional Items with Your logo
 
     
 
Smart Services
Spacer
Spacer
Spacer
Spacer
Add Your Logo Now
Spacer
Get Your Business Online
Build a Website Host Your Website Market Your Business Online
Business Form Downloads
Legal Forms Business Forms
Smart Forums
Recent Postings
Stimulus or "Pork"ulus?
Blog: How Do You Know What Insurance Is Right for Your Business?
If Layoffs Are Necessary, Protect Your Business
Blog - Do You Have Email and Internet Usage Policies in Place?
MORE
Home | Contact | Advertising
© 2017-2019 SmartBiz. All rights reserved. Privacy Statement and Terms of Service
Small Business Home | Business Tools | Online Business | Bits & Bytes | Sales & Marketing | Business Strategies | Forums & Resources
Email Marketing & HTML Email Driven By: Hosted By:   Design By:
Email Marketing
 
XML LogoRSS Logo
Receive our stories via SmartBiz XML/RSS feeds.
Include our stories on your website through SmartBiz javascript content feeds.