As the owner of a small business you will make tough choices during turbulent times like a recession or a decline in demand for your product or service. To remain competitive, you will streamline operations and innovative responses to external threats. It is crucial to foster innovation and make the changes necessary to ensure the success of your business today and tomorrow.
When times are tough, business owners often conduct layoffs in order to reduce their spending. However, the layoff of employees can cause harm to your business and undermine its ability to be successful long term.
Layoffs result in direct costs such as severance payments, administrative costs and legal fees, which eat away the immediate bottom line of your business. There are also less tangible costs, such as skills, knowledge and experience that are lost when an employee thank you.
Often, when faced with layoffs, employees feel less motivated and less productive, absent more, are more stressed at work and lose confidence in the company. It is possible that your best employees are beginning to seek other employment opportunities. Then, when business improves, you must assume very high costs to recruit and train new employees.
In the current economic climate, the opportunities are not lacking, but small business owners should make sure to develop clear strategies. Reducing costs and avoiding excess can help your company through the crisis in the short term, but do not put in a position to become a leader in the future.
Innovative measures for cost reduction and restructuring can help you reposition your business and define how you will conduct your business in the future, without having to lay off valuable employees.
Applies to: All Canada
If your company is experiencing a downturn and you do not want to lay off experienced workers, you can get income support to help you pay the workers.
Think long term
Whenever possible, avoid layoffs. Recruit new employees when your business is picking up is costly and can jeopardize your reputation as an employer.
Reduce personnel costs by reorganizing work. Multi-tasking and learning new skills allow your employees to meet the immediate and future needs of your organization.