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4 Ways to Warm Cold Cuts
Business Class Inc.
Layoffs. Reductions in pay and benefits. More work to do with fewer people and resources. Decisions perceived as good for the business - bad for the people.
Most managers and business owners hate making these cuts and do so only to avoid what seems like the coldest cut of all closing the business.
Their attempts to save the business often backfire. As they lower expenses, morale declines. So does loyalty. And productivity. Profitability too. All bad for the people AND the business.
If you need to make some of these tough, seemingly cold cuts for the financial health of your business but dread the impact on productivity and morale theirs as well as your own - here are 4 ways to warm things up.
1. Try to find cuts in other areas before laying people off.
The reason for this is well said by Anna Prior in " Be Prepared for More Cutbacks" (Wall Street Journal, January 26, 2009):
"Cutting back on employees may be the easiest way to save money, but it's very short-term thinking," says Bette Price, a certified management consultant in Dallas.
Once the costs of laying off an employee are totaled - severance, a smaller work force, heavier workloads for other employees, and the possibility there may not be the same level of talent available once the tough times are over - it makes sense for companies to consider other cost-cutting moves."
I agree, AS LONG AS, the cost cutting moves are in the best interest of your customers and AS LONG AS, the cost cutting measures are socially and environmentally responsible.
2. Get staff members involved in the search for budget cuts.
They often have great ideas since they work with your customers and systems every day and have first-hand knowledge of what works and what irks. The latter usually reveals opportunities to create or tweak a system or practice which usually increases efficiency which usually reduces expense. And usually increases customer satisfaction which normally increases customer retention. All of which tends to boost morale and revenue. Profitability too.
And it all happens faster if staff is part of the process from the start.
With all of those potential rewards, why not give it a try like Sally did in " Using All Your Strength"?
3. Make mention of the possibility of layoffs (and/or other worst case scenarios) and your preference to come up with ways to avoid them (if that is truly your preference and intention).
Be sure to stress that you are stating a preference not a promise. See Sally's language (from " Using All Your Strength") below.
In case any of you are feeling nervous, my first choice is to accomplish this goal without cutting jobs. I cannot promise that at this point. But it is my preference.
They will appreciate your desire and efforts to find cost reductions that don't affect them as personally as salary reductions and layoffs do. Plus it helps them understand very clearly what's in it for them to help with #2. Not as a threat, but as a fact. I.E. - If we can come up with enough savings elsewhere, we won't have to cut salaries.
4. Invite people to come forward
people who may be thinking about quitting or wishing they could work a reduced schedule. This is a perfect add-on to #3. See how Sally does it below.
In case any of you are feeling nervous, my first choice is to accomplish this goal without cutting jobs. I cannot promise that at this point. But it is my preference.
If you have been thinking about quitting and haven't told me or if you are interested in reducing your hours, please tell me ASAP because it will make this process easier.
Or you could take the approach shared in " Small firms advised not to lay off staff"
"KPMG is currently offering staff the option to sign up for working a four-day week or taking short-term leave on 30 per cent pay, although this is a contingency plan.
"We are certainly hoping that the majority of staff will show their willingness to sign up for this if necessary, even if they do sign up it won't necessarily mean that they will be asked to go on to a short working week," the spokesperson continued." (from Microsoft.com/SB News)
This approach is more specific, more structured and seems like a safe way (for employer and employee) to test the potential popularity of a possible program.
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#1-4 can help warm people up to cold cuts. But they will turn cold quickly if you stop there.
So don't stop there.
Look for ways to keep them warm in, "Keep Them Warm". If you don't find it right here on this site, you can find it at: www.managingtoughtimes.info.
Article submitted Thursday, March 26, 2009 & read 128 times.
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