One of both surprising and distressing news to hear is your company announcing that you and your teammates will be unemployed soon due to slow business or some other reasons that sent your business into a limbo realm. Layoffs are common during economic downturns and pandemic (COVID-19). If you’re the CEO, chairman or business owner, you can opt for these alternatives to save your business without taking the livelihood of your employees. Y ou can also reduce the negative economic impact on your workers.

ESTABLISH WORK FROM HOME

Keeping employees in rented office space costs more money. If your business work process can be partially or totally carried out at home, you can have your employees work from home. A remote work set-up can save you monthly expenses such as:

• Office space rentals - This is the highest operating expense unless you own your property. Even if you own your office, you have to deal with water, electricity and internet expenses.
• Water supply
• Electricity supply
• Internet connection

Industries or business and jobs with operations that can be performed at home.

• Information Technology
  • Programmer
  • Web or Mobile app developer
  • Graphic designer
  • UI/UX designer
  • Social media manager
  • Content writer
  • Video editor
• Healthcare
  • Remote medical doctor for consulting
  • Remote pharmacist for consulting
  • Remote dietitian for consulting
• Finance
  • Accountant
  • Bookkeeper

CONSIDER MERGERS AND ACQUISITIONS

One way to survive and avoid bankruptcy is to sell your company to a larger company. Acquisitions refer to a company buying out another company. Mergers pertain to a company joining another company to form a new one. You can have your company merge with another one. This can help avoid mass layoffs and save jobs.

CUT BACK ON EXPENDITURES

Cutting back on costs involves reducing non-essential monthly expenses that can take a huge slice of your budget pie. By reducing non-essential spending, you can save your company from going bankrupt or laying off your employees. Without these things, you can still have a functioning company.

• Cable television
• Car upgrade
• Credit card
• Dining out and takeout of board members
• Office aesthetics and upgrade
• Printing
• Vacation travels

CUT PAY/SALARY

Inform your employees through memos and letters that everyone must undergo a sacrifice for companies and job security - that is, cutting salaries. Make sure that pay cuts are appropriate and sustainable. You can’t cut the salaries of those who receive less and have barely enough money to survive the cost of living. High ranking employees such as directors and managers who earn a humble salary and enjoy a nice house or fancy cars can afford to take salary cuts. Remember, true leaders take sacrifices while terrible leaders impose sacrifices on others.

After giving them the news, inform them that the benefits will be reinstated when the business returns to normal.

CUT BENEFITS

Benefits can mean bonuses, car loans, medical insurance and vacation trips. Tell your employees through email and memos that you have to resort to cutting some benefits to save jobs, but as soon as your business return to normal, the company will reinstate the benefits. 

ENCOURAGE VOLUNTARY RETIREMENT

This option is good for employees nearing the age of retirement such as 50 and 55. You can offer them retirement packages such as cash and a livelihood package.

FREEZE HIRING

If your current staff can do all of your daily operations without quality and efficiency issues, then freeze hiring will work for you. A multi-talented employee can work wonders for you when he or she can do many things or higher-level tasks. When you assign additional workload, make sure to fairly compensate and not to overwork him/her. Remember that overworking employees is an unsustainable strategy.

OFFER UNPAID DAY OR TIME OFF

Save money from wage expenses by offering your employees more days off or slashed working hours. You can ask them to work 3 times a week in exchange for more off and job security. In this case, that will be a win-win scenario for both.

RENEGOTIATE SUPPLIER AND VENDOR CONTACTS

Sometimes you have to seek a solution outside of your company, which is to your suppliers and vendors. If have a good relationship with your suppliers and vendors, you can negotiate the contract for a better deal. Prepare your market data to back up your claim that you need to cut costs. A favorable contract can work on your odds and develop a mutual and sustainable relationship.