Hate Firing Good People? This Post Is Everything You Need
Being the boss has its moments. As the main man, the big cheese, the head honcho, you are in charge. So, it’s up to you whether you work 15 hours a day, seven days a week, or go into the office part-time. You decide whether to pay big bonuses and reward yourself for the company’s great work. Creating an amazing working atmosphere is down to you and you alone. Yep, being the boss is an excellent mix of power and benefits.
However, being in charge also means you have responsibilities. For example, if the money situation starts to go south then you need to figure out a solution. This is when things get hairy because firing is on the cards and it’s soul-destroying. Telling good people that they are unemployed is without a doubt the worst part of owning a company.
There is good news, though – you don’t have to do it. A quick glance at the financials suggests someone has got to go, yet alternatives exist. How much they save is debatable, but remember that every penny counts. And, if the following can protect dozens of jobs, then they are worth the hassle.
Stop The Extras
Top companies offer employees rewards to keep them in out of the clutches of the competition. For example, you may provide workers with free healthcare as well as insurance of a variety of different kinds. When the sun is shining, these are essentials as the best employees will leave otherwise. Now that money is tight, it’s time to tighten the purse strings and these should be the first things to go. The obvious question is “what about the best workers?” Well, there’s a chance they may leave depending on their loyalty. However, it’s better that they take a new position than the business goes bankrupt. Plus, it solves the problem of telling people that they no longer have a job. When you read the term “extras,” it means everything. So, as well as the above, cut down on overtime as well as the small overhead costs. Free coffee is a staple in offices throughout America yet you can’t afford the privilege at the moment.
Employee turnover is bound to increase as the people lose their benefits. To combat this, it’s tempting to kick-start the recruitment process and bring in new hires that are cheap. Recruiting temps is something businesses do to cut costs even when they aren’t in the red. However, it’s not a wise move if the finances are in a vulnerable spot as labor is a huge expense regardless. The new employees may be temporary stand-ins, but they will demand minimum wage at the least and the savings won’t be significant. Instead, try and replace the leavers with cheap technology. Receptionists, for example, are easy to swap with a piece of virtual software. The AI does the majority of jobs that a human would without charging a monthly rate. Technology is the answer if you need manpower.
Offer Unpaid Leave
Employees are paid, usually, based on the number of days they work during the year. Unless everyone is on salary, getting them to work less is a smart way to cut costs. Vacation time is a prime example, except that, by law, the company has to pay for a certain number of days off. However, after that, you are under no obligations. Typically, employers hate unpaid leave because it means there are absences which ruin efficiency. In this case, you may be better served to authorize more unpaid leave to help the firm’s finances. There are two reasons this method is effective. The first is down to maintaining a level. It’s amazing how much a small team can get through, especially if they are committed to the cause. Secondly, plenty of individuals will want a better balance between life and work. Anyone who is comfortable financially can use the time productively rather than counting the pennies. Float the idea and see who it interests.
Introduce Home Offices
Another cool tip along the same lines is to ask workers to telecommute. Employees love the freedom of being able to complete tasks in their pajamas because it is flexible and less stressful. Having the boss looking over their shoulder all day creates a certain level of tension. So, they will be interested, but what about you? What are the pros for the business? Well, the answer is a reduction in overheads. Housing hundreds of people in one place means you need to pay for lighting, heating, food, and electricity to name but four. Energy prices, as homeowners will know, are rising at a steady rate and organizations must to them into account. Telecommuting slashes the number of people in the office, which in turn cuts the total costs of overheads for the year.
Analyze The Wage Bill
Don’t worry because no one is getting fired, yet. It is a possibility but it is avoidable if you are dedicated. Still, the labor bill holds lots of information, info that may be the answer. To dismiss it out of hand, then, because you don’t want to contemplate firing anyone is a bad move. The trick is to take a look and evaluate the areas where there are potential cuts. For example, do you incur bank charges when generating and paying invoices? Banks do have fees so changing provider can eliminate an unnecessary cost. Free invoices should be a staple of an organization in 2018. Also, consider merging tech and labor. Picking one over the other is risky but using them in conjunction is cheap and very efficient.
An average working week isn’t set in stone. If you want, you can change it and have employees work less. This will result in smaller wages as the pay should be balanced out accordingly. Don’t worry about output because research shows that productivity increases when employees work in short bursts.
And there they are; the tips that can save jobs. Are there any which you think will work for your business?