Alternatives to Layoffs to Consider if Your Revenue is Down Right Now

If you're a business manager facing revenue loss and tight margins right now, you're not alone. Millions of small businesses around the country are struggling to stay afloat through the pandemic, and even now that some states are opening up some have had to lay off employees, something that no boss ever wants to do. If you are facing the possibility of laying off staff, you might feel hopeless, but there are options to consider before you lay anyone off.

Reduce the Workweek

If you have to cut costs, you might consider a 4-day work week or shorter hours at work. That way, you'll be able to reduce pay without dropping wages, and hopefully be able to keep everyone on staff.

Cut out extras

If you are paying for extra perks like wellness plans or  stipends for commuting or childcare, cut them out. Your employees would rather have a job than access to free yoga classes. You can reintroduce these perks later, once business is back up.

Stay Remote

Why  return to the office? If you've been working remotely during quarantine and it has been effective for you, consider getting rid of your office space entirely or downsizing to a smaller one and keeping most employees at home. This will save you large amounts of money in rent and utilities, and it might actually be welcome for employees that are concerned about the risks of returning to offices where they could be exposed to the virus.

Cut Benefits

This isn't ideal, of course, but if it has to be done, it's better than losing staff entirely. It will likely go over better if everyone--including upper level executives--take the hit, rather than just lower level employees.

Offer Early Retirement

If you have employees who may be considering retirement, you can offer them an early retirement package and save yourself from layoffs--and maybe make them happy too. Early retirement must be voluntary.

The important thing to remember, though, is that you have to be really careful of age discrimination when offering early retirement. You will need a written agreement with your employee that clearly states that they did not face age-related discrimination and may want to work with a labor lawyer to be sure you are in the clear.

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