When determining the appropriate time to conduct layoffs, you need to honestly ask yourself the following questions.
What is the worst case scenario? If production continues at the recent pace and does not improve, how many months can your company survive? How long can you survive and is your job secure? You need to always expect the best however a complete manager needs to plan for the worst case scenario.
Can production and revenue be fixed immediately? Are there training issues that are preventing you from success? Have you had an honest conversation with your employees letting them know the consequences should business not improve immediately? Perhaps recruiting a top producer from a competitor will immediately boost productivity.
Have you trimmed the fat already? Before turning to your human resources to cut costs, have you effectively cut your other organizational costs? Take a look at every line, no matter how minimal it may seem.
Can you cut salaries instead of cutting jobs? Most employees will understand a pay cut for a period of time until productivity improves. It is a much better alternative than losing their positions.
Have you solicited the help of a business consultant? Often a new pair of eyes from someone who specializes in this can offer suggestions and alternatives for your organization.
Laying off staff is incredibly difficult, both emotionally for you and how it affects the culture of the organization, however it may be what you need to do to continue your business and protect the jobs and careers of others around you.
Information provided courtesy of Rick Docekal at ArrowUp Consulting. ArrowUp provides consulting on business growth, sales production and operational expense control. Visit the Founder's website at http://www.rickdocekal.com to see what ArrowUp Consulting can do for your large or small business using the ArrowUp System.
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