With over 500,000 jobs being cut in just one month, and an unemployment rate hovering right around 7%, it’s only natural to think everyone must be letting workers go. But there are always exceptions.
No one wants to lay off employees. On top of the financial headaches of legal fees, outplacement, redistribution, etc., studies have shown downsizing also wreaks havoc on survivors’ productivity and morale. So aren’t creative alternatives at least worth a shot?
There are some companies that think so. And by going against the grain, certain firms have realized success without giving employees the axe.
Example: A prominent N.H. manufacturing company has never laid off a permanent employee during the course of its storied 40-year history. But during the past fiscal year, a year experts have repeatedly said is the economic worst since the Great Depression, the company was tested.
When the company saw sales drop 20% within a few months, they needed to cut some costs to stay afloat. Rather than downsize its permanent staffers, the manufacturing firm nixed overtime, delayed an expansion of the facility and got rid of temporary staff. In addition, the company took staffers from slower sectors and placed them in areas with more work.
And the future? The firm plans to bring a bit of the outsourced work back in-house to keep everyone busy.
Of course, for some, layoffs are just inevitable. But it’s vital to consider all crucial areas before crossing that bridge.