Power Tools and Tips for Workplace Leaders
Key Steps Before Resorting to COVID-Related Layoffs
To fend off the looming economic crisis, organizations are naturally turning to staff cutbacks. But now is the time to consider avoiding COVID layoffs.

While layoffs may be the most obvious course of action, what happens if a new vaccine arrives in the next few months? Will you suddenly need the very same loyal, experienced and skilled employees you just disposed of? With all the adverse impact on morale that inevitably comes with it?

If companies simply fire those key workers who put themselves in harm’s way to keep operations running, manning transport systems and maintaining and guarding office spaces, employers are bound to face scrutiny unlike any before — not just from shareholders but from the public too.

If less drastic avenues haven’t been explored and considered before resorting to mass layoffs, reputational damage is but one of the many hurdles you’re likely to face.

Fortunately, there are alternatives!
Downsizing? Try These Cost-Saving Actions FIRST!
  • Re-Skilling & Reassignment- Re-skilling and redeploying to other areas of the organization is one of the most innovative alternatives to staff cuts. By transferring employees most at risk of being cut and employing their skills in an area that the organization would otherwise have to hire to maintain, not only can businesses retain the individual, but they can avoid onboarding setbacks and costs.

  • Reduced Workweek- By cutting salaries and reducing the working hours, organizations can save on crucial workforce and operating costs while sparing employees from being totally without income and unemployed. Employees benefit from job security, plus gain some extra “downtime” — and so it’s a win-win.

  • Proportionate Pay Cuts- Before layoffs, another alternative is for organizations to reduce pay proportionately based on salary ranges in order to protect employees most at risk of workforce cuts. For example, this may be done by reducing the salaries of your highest-paid employees by 10%, mid-range employees by 5%, and everyone else in a determined threshold by maybe 2.5%. 

Information provided by HR Morning
Do You Have Questions?
Alternative HRD can help!
Often a combination of cost savings actions can deliver the same reduction in people costs as a round of layoffs. By carefully exploring the options, companies can spare reputational damages, save valuable people resources, and future-proof their business, ensuring it can face the recovery phase with the wind at their backs.
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