Are you at the point you need to make difficult staffing decisions? Here are four items not to forget.
Whether your firm is large, small or somewhere in between, you may be faced with rising costs and declining revenues. This, in turn, may force you to make tough personnel decisions, including layoffs.
Before you take this step, however, it makes sense to consider alternatives. Ask yourself whether expense reductions can be accomplished using less drastic means. For instance, a freeze on hiring, promotions or pay raises may reduce costs to an acceptable level. Asking employees to pare down their work hours is another option.
If these options do not reduce costs to an acceptable level, a layoff scenario may be unavoidable. Nevertheless, it pays to proceed with caution. Here are a few things to confirm before you start staff reductions:
You have a communication plan for your staff. Regularly communicate with your staff, preferably well in advance of any layoff action. Keeping employees informed about business realities can mitigate hard feelings and allow them to adjust, if necessary, to employment apart from your company.
As always, feel free to pass this Tip along to friends, and reach out if you need help with your personal tax and finance situation.