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Ideas for cutting employment costs to avoid layoffs

mercurymercury 6 Posts
in HR & Employment Law Vote Up0Vote Down
Does anyone have any ideas on ways to cut employment costs in an effort to avoid having to lay employees off? Any help would be greatly appreciated!
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  • 3 Comments sorted by Votes Date Added
  • plynnlplynnl 381 Posts
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    We have a small company and we asked our employees as of the first of the year to take a 15% pay cut for the first quarter in order to avoid laying off any employees. They felt it was better to get a little less than to be out of work completely. We also told them that when revenues pick up they would be compensated for the lost revenue in either a raise or bonus.
    This way we also hope to avoid having employees paying a part or all of their health insurance or postponing 401K matches.
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  • Celeste_BlackburnCeleste Blackburn SPHR 248 Posts
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    We have a free white paper that you can download, "Five Alternatives to a RIF."
    Hope this helps!
    Celeste

    [url]http://www.hrhero.com/whitepapers/index.cgi?wprif[/url]
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  • C WilsonC Wilson 122 Posts
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    We have asked employees to take voluntary attached lay-offs on a rotating basis. Each employee will be off work one to three weeks or more if someone would like more time and we have another employee to cover the position. Check with your local Employment Security Commission office to see what the specifics are for your state.

    In NC as long as an employee works some hours during a 30 day period they are still considered an employee of our company and I file for the UI benefits on line for the EE's We will continune to pay the company % of insurance benefis, but of course do not have to pay Fica & Futa taxes, or the 401K match.

    The savings for each individual EE, per week on attached lay-off making $500 with a 10% 401K match per week = at total savings of $571.25.

    January & February are our slow months when hours are cut to a bare minimun, so employees actually make more money rotating out on lay-off , than working a recuduced schedule. This may not work for everyone, but it works great for us.



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