Given the difficulty of running a business these days, some
owners have no choice but to retrench their employees. It’s probably the only
way to save money and keep the company running. However, it might be terrible
to let employees lose their income source considering how difficult the economy
is. If you’re already heading towards this path, you might have to consider
other options first.
Instead of letting the employees go, you can ask them if they
feel okay with a pay cut. Let them know it’s temporary. Once the company gets
back on its feet, they can get their previous salary back. Of course, you can
also let them work for fewer hours or reduce the workload. Some employees will
agree to this setup since they won’t
lose their jobs.
Instead of a pay cut, you can consider increasing workload.
Some businesses might feel stagnated due to this pandemic, but it’s actually an
opportunity to prepare for the future. Some employees can help in this regard.
Offer them more tasks such as conceptualizing future projects, coming up with
new products and services, or creating a health crisis plan. Some employees
might have expertise on these topics, and they can of huge help.
Another option is to change the job description. Some of your
employees might not be necessary anymore, especially if the company will move
online. You can offer them a different temporary job description until the
business gets back on its feet. Let them know that it’s only temporary, but
there’s an option to make it permanent if preferred.
Encourage employees to help advertise the brand
One of the reasons why some businesses don’t do well these
days is due to the lack
of customers. It doesn’t mean that the market no longer exists. It’s just
more difficult to convince them to spend money. On top of the health crisis,
the world also faces economic issues. If the company improves its marketing
campaign, profits will start pouring in. It helps if everyone does something
about it. A collective advertising effort might bring more customers into the
Freeze new hire
You can no longer afford to pay all your current employees.
It makes no sense to hire new people. If you need someone to do the job, you
can train existing
employees. It’s cheaper to do it this way than to hire someone and spend
more money for training.
The point is that you don’t have to resort to retrenchment as
the first option if the business isn’t doing well. These employees are valuable
to the organization, and you should consider keeping them. You also don’t want
your competitors to steal some of your best assets. If these options work,
there’s no need to fire anyone anymore.
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2nd image from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/covid-pay-cuts.aspx