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Activities: Eight steps for effective cutting



2021-09-08

  Business: Eight Steps to Effective Reduction For a small business owner, it is never easy to fire employees. Once employees have become friends or even family, it can be especially difficult to make a decision about doing what is right for your business. So how do you know when it's time to release people, and how do you reduce in the most humane way possible? Here are some things to keep in mind before you downsize, and some tips to go through the process.

  1. Get the big picture: If your business has been slowing down for a while or if you're just struggling to cope, it may be time to sit down and take a closer look at your resources, workflow, and ultimately your end result. . You need to consider whether your current situation is temporary or long-term and identify if the problem can really be solved by reducing.
  2. Try Other Solutions: Before making any drastic changes, you can explore other ways you may be able to cut costs without major, involuntary redundancies. Can you offer early retirement, sell certain assets or reduce hours? Does it make sense to leave some of your employees for a short time? If your current challenges seem temporary, it may make more sense to find a way to get through them.
  3. Communicate early and often: If there is a reasonable probability that you will need to reduce your workforce. , do not wait until the last minute to tell your employees. Be upfront about the challenges you face, your strategy for turning things around and what would need to happen for you to completely avoid downsizing.
  4. Be the leader: Take responsibility for what happens and any mistakes you have made. Be honest and do not be afraid to show vulnerability, but also try to express that the ultimate goal is a healthy, prosperous company and that you have confidence in the plan.
  5. Do your research: Find out if your company needs to provide severance pay and what it means. In some cases, employers provide severance pay even if it is not required by law or company policy.
  6. Describe the facts: If you can not avoid dismissals, do not try to get an overview of what is happening. With kindness and compassion, tell each employee the truth about why they are being released and what will happen next.
  7. Offer Help: Do what you can to help fired employees find leads in other positions, or offer to give a positive recommendation or help with a referral.
  8. Pick up the pieces: While downsizing may have an immediate effect on improving your company's cash flow, it's likely that your staff will be shaken by losing key team members and uncertain about the future. Pay attention to the fears, feelings and worries of your remaining employees and take positive action to rebuild morale.

For business insurance questions, call or contact Keller -Brown Insurance Services today.

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