Many companies choose layoffs as a clear way to reduce costs. And yet there are other options to cut HR costs. Management Today came up with 10 tips:
1. Reduce voluntary overtime. Clearly explain to your employees why this is necessary because some expect overtime pay as part of their monthly income.
2. Stop hiring. Try filling new positions with your own resources and only change job descriptions of some workers.
3. Reduce benefits. Especially if the market situation is such that there is a significant overhang of job seekers compared to the number of jobs in that field.
4. Reduce working hours. For example, you can introduce a four-day work week. Regularly monitor the situation to go back to the original 5 days as soon as possible.
5. Reduce the number of working hours per day. It is an alternative to the previous solution, because it is not always possible to completely stop working for one day a week.
6. Freeze salaries of all employees. Do not forget to communicate about this with employees. In particular, it is necessary to find another way to maintain their motivation and morale.
7. Promote job sharing. This allows several people to carry out one position. You avoid redundancies and support the team spirit.
8. Identify and support secondments. It's a great way to send people out and gain more insight.
9. Agree time off with senior employees. The reasons may be various - traveling, volunteering, study, research, etc. Anyway, all this may be a part of your employees' personal growth as well as appropriate cost savings.
10. Offer an opportunity to purchase extra annual leave. Employees will gain an option to "buy" extra vacation days in exchange for a proportionate part of their salary.
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