How to Stay in Business without Layoffs

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There are ways to stay in business without layoffs easily deployed for small and medium companies. Layoffs should always be a last resort after every other possibility is exhausted. Unfortunately, most companies don’t do this, which is a shame since it’s pretty easy. All it really takes is some restructuring from within, with everyone playing their part in it all. So, from embracing automation to remote work and executive cuts, here are some suggestions.

Assistance from Specialist Apps

Apps have steadily integrated themselves into almost all businesses and sectors over the past decade. Ease of use and multifunctionality makes them solid contenders for enhancing pretty much any business process. From handling finances and taxes to securing clients with janitorial inspection software from Janitorial Manager, there is no shortage of apps for enhancing business, which could mean the difference between production and removing employees.

Automate to Stay in Business without Layoffs

Apps are one thing. But another type of technology that a modern business cannot do without is automation. Automation has been around for decades. However, where it is once applied to complex manufacturing processes, simple automation tasks, such as email marketing campaigns, can offer a return on investment of up to $40 for every $1 spent. This means you can reduce costs significantly by analyzing your business to see what can be automated.

Consider Freezing Wages

Nobody wants to lose their job. And if you need to freeze wages to do it, then most people will be on board with it. This is best offered as part of an overall austerity solution, or it will be perceived as picking on your workers. Explain to the staff how long a wage freeze is expected to last and offer support for anyone struggling with finances. However, be aware that due to contractual obligations, a wage freeze isn’t always possible and could end up with union action.

Offer Remote Work Programs

Remote work is a Godsend to both employer and employee. Working from home has been shown to have significant well-being benefits and even more production. Here are some more:

• Fewer office employees means you can move to smaller, cheaper premises.
• Less money is spent on recruitment as employees are retained for longer.
• Fewer funds are required for utilities such as heating, water, and electricity.
• The average company saves around $3,000 per year per remote employee.
• People are generally happier and more productive when working from home.

Only a few short years ago, remote teams were a non-starter. Following Covid-19, it has now become normal as businesses see the benefits, including much lower costs and overheads.

Audit the Business and Its Expenses

As a sole trader, CEO, CFO, or business owner, you should know all the income and expenditure of a company. Keeping track of where money is going out helps keep the budget tight and within reasonable boundaries. However, expenses have a way of piling up, including unnecessary ones such as office perks. We all love office perks. But employees will be OK with cutting any of these so long as they get to keep their jobs. An audit can uncover hidden costs.

Stay in Business without Layoffs with Executive Cuts

According to multiple sources, the average executive in the UK alone earns 464 times the salary of the average full-time worker. This is an obscene amount to be paid to anyone, and your business may be leaking money on executive salaries. Reducing executive salaries and freezing pay will undoubtedly help your business reduce expenses if it offers executive terms. Executives must be willing to accept that pay needs to be revised during tougher times.

Outsource Some Services to Contractors

All businesses have full-time contracted employees. But you can reduce costs by mixing full-time staff with part-time staff or even outsourced contractors. The case for contractor workers is that they don’t hold obligations as they typically work for an external company. Additionally, it is possible to enlist their services as and when they are needed without having to pay large salaries each month. Further, outsourced staff are typically skilled and reliable.

Summary

There are a few ways in which your business can save money when times are tougher. Specialist apps and automated processes will help you stay in business without layoffs being considered. Both you and the staff can also benefit from remote work programs that reduce costs and boost productivity. Further savings can be made by outsourcing skilled services, such as IT and customer service, where your business can pay for services on an ad-hoc basis.