Laying off workers can strain more than the employees who lose their jobs and the managers who have to deliver the bad news. Studies of corporate downsizing show that, while organizations view layoffs as a cost-reduction strategy, they typically don’t reduce expenses as much as the execs had hoped.
Many employees would choose a pay cut or unpaid sabbatical over losing their jobs. Keeping them on the team means they’re more likely to stay with your organization when the economy improves and you need them again.
Before your organization starts handing out pink slips, consider some alternatives that have worked for employers during past economic slumps.
1. Cut hours, not jobs. With business slowing, many employers are choosing to trim employees’ hours rather than cut jobs—so far. According to new U.S. Department of Labor stats, the hours worked by the average private-sector U.S. employee declined this spring for the ...(register to read more)
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