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How to Avoid Layoffs During Tough Financial Times
To save money during tough financial times, businesses often resort to layoffs as a way of staying competitive. However, layoffs can damage your reputation and negatively impact the morale of current employees.
Thankfully, there are alternative options to layoffs that often go overlooked, including the following:
- Reorganization. Instead of hiring multiple individuals in separate roles, always look for opportunities to consolidate. Encouraging employees to cross-train one another is an effective way to ensure that there are no gaps in the workflow, without needing to onboard more employees, which would increase spending. Essentially, you are assigning more responsibilities to strategic roles. An open dialogue between managers and employees is critical here, as you want to ensure that your employees are not overworked and that they enjoy any additional tasks they are assigned.
- Work-sharing. This is when multiple employees are retained as part- or reduced-time employees and split the job duties regularly performed by one employee. To be eligible for a work-sharing agreement, employers must have been operating in Canada for at least two years, among other requirements. For more specifics on all of the eligibility requirements, click here.
- Wage subsidies. To save on hiring costs during times of financial strife, many businesses turn to wage subsidies. There are a variety of programs available that give employers immediate access to savings through tax credits when they hire certain types of workers. For a list of programs, click here.
In addition to the above tips, another critical aspect of surviving tough financial times is staying positive. This attitude will be evident to your employees and will instil a sense of security that will be vital in preserving high-quality work.