If your company is experiencing reductions in work, HRC is here for you!    Consider these 10 practices for reasonable and fair responses to the situation that will help your business continue achieving optimal results.

1. The Leadership Team should discuss any open work opportunities that could be accomplished through employee transfers or department changes

      • Employees can be reassigned to new areas, where possible, based on ability to perform the other tasks looking at their abilities and performance level.

      • This could include direct labor activities based on projected sales forecasts & Revenue Per Headcount benchmarks
      • Or, this could be indirect labor activities that will help create a positive impact for the business in the future (i.e., painting, yard work vs using vendors, cleaning, etc.)

2. Review their critical business roles (as it pertains to their business process) and decide positions needed for the future (and those that are not needed) to reset their organization

      • This is also a great time to perform Succession Planning for all critical and unique business roles to ensure backups are identified and being trained for the future.

      • This is also a great time for general cross-training.

3. Review long term business trends and take this time to “rethink” how work gets done

      • What opportunities do we have to improve or grow the business?

      • How can we best structure our workgroups to achieve optimal results (LEAN)?
      • How can we reduce costs without compromising the quality of our product or service?
      • Hold meetings discussing a financial overview, the state of the business, and the need for identifying cost control measures to solicit input while also setting some expectations.
      • Can we automate or outsource any functions or processes to drive internal efficiency and scale the business appropriately?
      • Can we acquire or create a new business unit to produce some of the raw materials we
        are purchasing or that complement our business?

4. Consider implementing a “No Overtime” rule (unless absolutely required to meet customer expectations)

5. Reduce any external workshops, unnecessary travel, company events or any other activities not contributing to future investment (maintaining/growing new customers)


6. Consider “contracting out” some team members for short periods of time to other regional companies who need help

      • The Company would invoice the outside companies for the employees’ hourly rate and benefit cost to stay “cost neutral” or with a margin.

7.  Ask for volunteers to use their Paid Time Off or take Voluntary Time Off Without Pay (at their choice)

8. Provide “Voluntary Early Retirement” Packages for specific or all areas of the business where this might provide an opportunity to “refresh” the internal competencies, while also providing a benefit to certain employees. 

9.  Another option would be to reduce the number of days worked by temps or eliminate the roles where it makes sense. They may also reduce hours for other employees (starting with their Part-Time roles first)

10. Where there may be a longer period with a lack of work, the management team should review the headcount needs and consider layoffs or reductions in headcount

      • This would be based on low performance first (using Performance Ratings, discipline reports, attendance, etc.)

      • Consider seniority second for non-union facilities.
      • All temporary employees should be let go first.
      • Temporary layoffs or furloughs could also be helpful.
      • Some companies offer 1 week per quarter or month that the employee chooses and that impacts every employee (for better buy-in).

*NOTE: Planned “Shutdowns” for a short, limited period of time (a week or two) with a return-to-work
date is typically not eligible for unemployment benefits.

Unplanned layoffs with an indefinite period of time based on economy changes are typically eligible for
unemployment benefits. The first week is usually a waiting period with unemployment benefits paid the
second week.

Need help with any of these types of business and HR/People strategies? HRC is Here for You! Visit us at: hrcollaborationgroup.com, contact us directly at Sandy@myhrcgroup.com or PH: 574-210-9345