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Instead of laying off workers in a down economy, consider other
alternatives for cutting costs in human resources to stay in business.
HR personnel must spearhead effective communication with supervisors and
employees. "Sell the idea that [these cuts] are only temporary to
prevent people from losing their jobs," says Emory W. Mulling,
chairman of The Mulling Companies/Lincolnshire International (www.mulling.com),
an executive coaching and search firm in Atlanta.
Consider expense cuts for each department with specific
guidelines regarding overhead. Allow the employees in each department to
determine how to achieve the reductions. "The value of this is they
determine what is cut and accept this more readily," Mulling says.
Implement staggered workdays by allowing workers to come in
for a portion of the week. For example, some workers can come in Monday
through Thursday and other employees Tuesday through Friday. To
implement this option, departments must make sure to cover all functions
of the operation, Mulling says.
Cut benefit expenses but give employees some options. Perhaps
you could decrease health-care cost by increasing the portion the
employees contribute. Or you may consider stopping the matching of the
company’s 401(k) plan. Give advance notice about any benefit changes,
Mulling says.
Lower base salary and implement bonuses. You can
implement incentive-based salaries within the entire company or just
among your higher-level management. These bonuses should be based on the
company being able to achieve a certain level of profitability, Mulling
says. The more profitable, the higher the bonus will be. "This
strategy may also encourage employees to be more productive,"
Mulling says.
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