Cost Cutting Ideas Needed!

HR Guy

My company is looking to cut salary costs WITHOUT having to do a full-blown layoff - things like a mandatory day off w/o pay each week, unpaid sabbatical, etc. Does anyone have any ideas or experience in this area? Thanks!

ritaanz

We took the work week from 40 hours to 37 1/2 hours, adjusting the gross accordingly. The employees were told it was a temporary measure. Of course, not all were happy but they understood.

Lola815

We have definitely experience this before. One time we started by letting employees volunteer to cut back their hours. There was enough people that volunteered that this seemed to be all that was needed. We also had a few people quit because they knew things were getting bad and they didn't want to cut back their hours so they went out and got a different job.

Another time it was around Christmas time so we just had a mandatory two week no work for all employees.

When employees really like their job, they will usually do whatever it takes to keep it.

Good Luck!

lee2

I've gone through this a few times. The approach which works best for me is to meet with employees, explain why cuts are needed and ask them for ideas. I usually share five or six examples. Their participation in the process has resulted in better understanding and acceptance.

JEBtrois

Is your company looking to reduce overall operating expenses and just focusing on payroll as the way to do it, or does management need to reduce the payroll expense line item. Most employees would rather have a job and get paid than face a lay-off....accordingly, I would recommend looking at other employee related expenses first. For example, I was able to stave off a lay-off by reducing my company's discretionary match in the TSA as opposed to laying people off, but keeping benefits the same. Saved $500K and Kept all my people and explained the financial picture; then I raised the bar in terms of performance expectations and indicated that without enhanced performance the company may have no choice in the future. This really lit a fire under most employees and we have made a financial turn-around and will soon be in a position to move the discretionary portion back up.