COVID Related Downsizing

COVID Layoffs

Before 2020, the top-most worry and concern of every business owner were to find the right talent. However, the novel pandemic forced the businesses to terminate or furlough employees en masse. As countries implement business closures and worldwide lockdown, the companies were faced with unthinkable reality. From lack of salary budget to drastic impacts on business operations, the businesses struggled for survival. The economic downturn risked the long-term viability of the dramatic business staff, cutting overheads, and sheer cluelessness about what will come next. Downsizing is never easy for anyone; where employees lose their livelihood source, the businesses are forced to let go of valuable people. Downsizing can endanger the employees’ loyalty, trust while leaving impacts on their productivity.

If you haven’t cut back on the staff or need some trimming choices on how to carry out reduction while maintaining a relationship after cutbacks. As an employer, you have many options to cut down on the employee roster:

Reduction dispersion

In order to not lose valuable employees, the employers could go for the last hire, the first policy. The approach may not be welcomed by many, but in times of such desperation, it is fair to favor the ones who have served the longest. Executing this policy according to the guidelines of the employer, this equitable approach allows for the elimination of age and gender discrimination. Another alternative to disperse the reduction and downsizing is to distribute the employee and salary reduction equally for both the employees below and above 40 years of age. However, it is important to ensure adherence to the classifications and employee’s legalities which could otherwise lead to legal action.

Plan for the coming unseen

In case your business is at risk of potential closure, laying off the entire staff is inevitable. However, if you wish to restore the lost productivity and operational activity, having an on-off furlough could keep you prepared for the unknown and unanticipated circumstances. It allows you to increase retention rates in times of such uncertainty while leaving your employees with some income for months on end. The furlough plan includes an effective measure for even the slightest workforce disruption while enabling the company to meet its targets and employees’ needs. The plan ensures the treasured employees that their company hasn’t forgotten about or abandoned them.

Keep the communication strong

While you might be planning for cutbacks or salary reduction, the fear of getting laid-off prevails in the mind of your employees. It is highly crucial for employers to communicate the company’s plans and strategies for dealing with the uncertain situation to keep them at ease. Share the facts and stats of the company’s performance, sale shares, and revenue generation to gain their trust and approval for your actions. Ensure them that the cutbacks and salary reductions are not because of the staff’s mismanagement or underperformance. Convey the implied impacts and conditions of employee benefits that will change after furlough. Most importantly, be present when it comes to providing emotional and psychological support to your employee.

Make sure to go for less drastic measures to retain the valuable employees while ensuring their availability to rejoin the company. The last goodbye is an impactful one as it affects your reputation as an employer; make sure to provide your employee with good and lasting memories.

The downsizing requires proper planning and execution. In case you are faced with business closure situation and are going through troubles of downsizing, contact our experts at New England Staffing to get professional help for both your employees’ and business betterment.

Other Posts from New England Staffing;

https://www.nestaff.com/temporary-vs-permanent-it-jobs-which-is-better/

https://www.nestaff.com/working-with-an-agency/

https://www.nestaff.com/what-makes-a-good-staffing-agency/

https://www.nestaff.com/why-working-with-a-staffing-agency-is-a-good-idea/

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