An Alternative to Layoffs

We are seeing a new phenomenon in how companies and workers are dealing with layoffs. Management and employees alike are looking for alternatives to the knee jerk reaction of taking the easy way out and laying off workers. You have alternatives that employees are willing to consider in order to help save their own jobs along with those of their worker’s jobs.

First and foremost, consider restructuring your organization to eliminate non-productive divisions. Do not just stop there. Consider moving the workers from those locations to more productive areas of the organization. Institute a hiring freeze as soon as you believe it may be necessary to reduce your workforce.

Many employees are willing to take a temporary cut in pay rather than losing their jobs all together or better yet, reduce the hours. Most individuals do not mind a cut in wages as much if they are not expected to work their normal forty-hour workweek.

Offering early retirement is an alternative for older workers. You will need to make sure they get their normal retirement benefits otherwise, it is less likely that they will accept the proposal.

Benefits are another area that employers are looking at in order to reduce cost. Benefits can account for up to sixty percent of an employee’s wage expense. Many workers would rather lose their benefits in the short-term in return for keeping their jobs.

During this difficult economic period, workers understand that organizations are struggling. Many individuals are willing to accept shorter workweeks, less pay, or reduced benefits in an effort to keep their jobs. Consult with your labor attorney before instituting changes to ensure that everything is done within the letter of the law.