None of the business can able to face the problems with their balance sheets in an economy this fraught with potential disaster. But an uncertain future for a small to midsize company is really harder to manage. For companies with hundreds of employees, administration can choose to lay off people in order to trim operating costs and thereby retain financial capital. But for small organizations, there are creative ways to make changes to help the balance sheet while allowing employees to stay, thereby retaining human capital.
Reduce salaries across the board:
Such kind of situations, employees might welcome the idea of taking a pay cut instead lay off. But lowering the salaries of just a few people or a group of people will impact productivity and morale. A more effective solution is to cut down the salaries for everyone by the same percentage, across the board, including management. It may sound odd, but cutting salaries for all the employees instead of laying people off might make people feel like they are a part of the solution and increase the feeling of workers all pulling for the same team to ensure company success.
Eliminate vacation or holiday pay:
Most of the companies offering paid vacations and holidays for their employees, but they are all not prescribed in the law. So by terminating such benefits to the employees, a company can save lots of money. Although it says that, employees will not be paid for taking time off, it may also mean that they will take fewer days off, which will results in productivity. And not being paid for time off is definitely better than being laid off.
Offer temporary furloughs:
Employees may like to have a little time off without pay, it will result in their job being more secure. An administration can schedule the lays off for employees to alternate times off without pay, with one group off for two weeks, then as they return to work a second group goes off for two weeks, and so on. Being laid off temporarily until the financial conditions are better will surely beats being laid off permanently.
Implement a shorter work week for hourly employees:
For years some large organizations have had work weeks of 35 to 37 hours rather than the traditional 40-hour work week. The shorter work week trend has been designed to make the workplace more appealing and keep the employees happy. For companies with hourly employees, a shorter work week will leads to less pay, but if working fewer hours will increase the likelihood of being able to keep the job, then workers may gladly accommodate to reduced schedules.
One easy way to save money immediately is by canceling your company’s outsourcing works. You can cross-train people to perform jobs that are currently being outsourced, and therefore keep that money in-house. This may not affect workers’ salaries at all, but it will require employee to pitch in and work longer hours.
The most important thing a company can do in times like, slow economy is to be completely open and honest with employees. Instead of having your workers coming in to work each day wondering if it will be their last, you should have regular status meetings to keep them apprised of what’s going on. Regular meetings will not only ease the worries and give employees a chance to ask questions, they will also provide a venue for voicing suggestions or ideas, and giving people a chance to offer solutions as a team instead of worrying about the future individually.
Making your employees feel like a team and working together to keep your company afloat will do wonders for efficiency, productivity, and morale. If a company tightens its belt by contributing everyone to the solution, then everyone will have a stake in the reward when the company continues to flourish and the economy rebounds.
We are in the process of expanding exhibits, doing further restoration work to the Casey Jones Home and renovating our railcar and caboose.