Options to Consider Before Retrenching Employees During the Pandemic

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.

Pay cut

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. 

Increased workload

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.

Shift responsibilities 

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 fold.

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.

Photo Attribution:

1^st and featured image from https://d3ayyz93zozlya.cloudfront.net/uploaded-images/articlemainimage/can-i-fire-this-person-588a1a510f49f.jpeg

2^nd image from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/covid-pay-cuts.aspx