Everyone is feeling the pain of the poor economy, particularly small businesses. Keeping your valued employees is especially critical at this time. You can’t afford to alienate your customers by eliminating employees and diminishing customer service.
Consider the following before passing out the “pink slips”.
Eliminate nonessential meetings and travel. Critical training should not be eliminated, but consider local resources and on-line seminars.
Audit your office supply expenses. Employees need the tools to get the job done, but do you need 12 different colors of post-its and 6 different kinds of pens
Ask your employees for their input on how you can save money. Employees are more likely to “grin and bear” the necessary cuts if they have a say in how it is done.
Institute a hiring freeze. Ask for help in reassigning the job duties if someone leaves the company.
Consider a reduction in the work week for everyone.
If pay cuts are an option, be sure they begin with the owner and managers. Start by eliminating bonuses.
Request employees to take an unpaid vacation.
Become more economical when it comes to company luncheons, holiday parties, etc.
Remember to be upfront and honest with your employees. Layoffs should be the last resort for the business owner.