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Economic Survival Tips
Small Businesses
S. O. S.
Sales | Operations | Staffing

Staffing
          This is the toughest area to get it right in tough times, because you do not want to put people out of a job, but also, you do not want to go out of business.

(1) Your weakest performers should have already been gone. They may have to find a lower skilled job, because they are not going to find the same job as a weak performer with another company in this environment. Advise them of that so they can be realistic.

(2) If your cash flow is negative or almost negative, cut your salary first to just enough for you to sustain yourself. Then, take a vote with “secret ballots” of your remaining people to determine who would be willing to take a 10% pay cut temporarily to keep everybody on the payroll. We don’t know how long “temporarily” will be, so don’t commit to a time.

If the vote is unanimous, then do it. If it is not unanimous, then you will have to let someone go immediately. But, be as fair as you can with their severance pay.

You may have to ask your people to work an extra hour a day until things turn around. Or, you may consider a four day work week if your business is appropriate for such a schedule, to help them save some money.

(3) Be honest with your people and let them know the status of the business. You might be surprised at the suggestions they may have to keep the business going in these tough economic times .

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