By Nsunjo Erica
Many businesses facing Crisis related closures must always make the difficult decision of either temporarily or permanently laying off some of its employees due to an inevitable decline in business.
A number of entrepreneurs tend to feel the heat of having to take very crucial decisions on which employee to lay off and which to retain as the business continues to downsize over the increasing decline in clients due to the impacts of the crisis.
Countless small businesses are normally the ones facing hardships of failure to continue affording full payment of their staff, pushing them into undefined corners of cutting employee salaries or inevitable layoffs.
Most affected Small businesses (SMEs) especially in countries where governments haven’t put in better efforts to provide credit facilities like loans so as to ensure continuity of these enterprises. The end reaction has been laying off staff.
However, as a business owner, here are some steps to take if you are forced to cut back your staff during the inevitability of a crisis.
Come up with an “on-off” plan
If your business is forced to shut down entirely, it may be inevitable that you need to lay off your entire staff. However, if you are able to continue operating but simply need to cut back, it may be wise to design an “on-off” layoff plan, so your employees are not completely without income.
For example, instead of a three-month payoff, give workers a one-week-on, one-week-off schedule for some months. The cost would be the same, and it could help to lessen the financial burden on employees and sustain their ability to meet their expenses.
Staff needs to feel that they still matter to the company and haven’t just been abandoned or forgotten about simply because a crisis arose.
Be honest with your staff
While your employees may be expecting cutbacks after realizing and understanding the existence of a crisis, they may be feeling nervous about how layoff decisions are being made.
As an employer, clearly communicate that the layoff is not caused by mismanagement of the company or underperformance by the employee but by the crisis. Although this may seem obvious during a crisis, it’s still important for you as the employer that provides that reassurance as employees may need it as a hold on.
It is important as an employer to clearly emphasize that all options have been carefully explored and there is no alternative to a layoff, show your sincere apologies, because some of these staff have worked with you for years.
Provide clarity around benefits
having access to proper company benefits during a crisis is of the utmost importance. Employees who receive health benefits or benefits of any form from your company will want to understand how a layoff will impact their continuity of having access to them.
It’s important to be clear what benefits will remain in place during the layoff. Sometimes pay may be suspended but possibly health care benefits may remain in place. Staff needs to know exactly what the situation will be for them, so be clear.
Do not allow for work-related emails and calls during the Layoff
If your employees regularly communicate with customers and clients directly via email, make it clear that they cannot do so while they are laid off, to avoid any legal claims of unpaid work.
A temporary unpaid layoff is fine because it doesn’t mean cutting ties with the company, but it’s important to ensure that staff doesn’t then undertake any work while they are off.
Stay in touch and provide mental and emotional support
Sometimes you may be forced to let go of employees who have stuck with your company through thick and thin, therefore, while you can’t ask them to handle work-related situations while they are laid off temporarily, communicate.
you can and should keep communication open if they have questions and provide updates on your business’s evolving situation.
As an employer, provide psychological support, show empathy, be responsive, and regularly check in with the laid-off employees, effective communication helps to motivate the laid employees and retain the good performers.
In case of a temporary la off, your staff needs to feel that they still matter to the company and haven’t just been abandoned in case you decided to call them back. Make your communications personal to each individual, not those automated replies.