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.
October saw the highest jump in the U.S. unemployment rate in 14 years. Now, all eyes are on you for answers as to how your company will be affected.
Effects of the credit crunch are already being forecast, as many finance execs plan to take drastic measures to control costs next year.
So it’s certainly not going to be good for the employees you have to show the door. But if you have to make this tough call, you certainly want to make sure your company gets the most out of it.
Sure, laying off employees can cut costs — for now. But more often than not, those savings disappear after a few quarters. And long after the short-term savings fade, your company could be left with these hidden costs:
A reduction-in-force might increase cash flow, but is your company prepared for the employee exodus that’ll follow?