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Preparing staff for a tough year

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Henry Craver's picture
Small Business Owner , Self-employed

As a small business owner, I'm always trying to find ways to cut costs and boost the dependability of my services. To that end, I've become increasingly invested in learning about energy saving...

  • Member since 2018
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  • Dec 29, 2022
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After a foreboding 2022, complete with inflation, a tech melt down, and an energy squeeze, many commentators are predicting a global recession for 2023. The grim prognosis begs the question of managers in almost every industry: How do you prepare your staff for cuts and pay freezes? I've put together a little guide. I hope you find it helpful and please feel free to add on or amend in the comments.

  1. Communicate the situation clearly and transparently: It is important to be upfront and honest with your staff about lay offs/pay cuts/spending freezes and the reasons behind them. Make sure to explain the financial situation in a way that is easy to understand and to emphasize that the pay cut is a temporary measure.

  2. Give advance notice: If possible, give your staff as much notice as possible before the period of austerity beings. This will give them time to prepare and make any necessary adjustments.

  3. Offer support: In addition to communicating a pay cut or something of that nature, it is also important to offer support to your staff. This could include offering resources for finding additional income or temporary assistance with bills or expenses.

  4. Consider alternative solutions: Before implementing a pay cut, for example, consider whether there are alternative solutions that could help mitigate the financial impact on your staff. This could include reducing hours or temporarily suspending certain benefits, rather than cutting pay across the board.

  5. Emphasize the long-term outlook: While pay cuts and layoffs may be difficult in the short term, it is important to emphasize the long-term outlook and the steps that are being taken to improve the financial situation. Let your staff know that the pay cut is a temporary measure and that you are working to restore their pay to previous levels as soon as possible.

  6. Be open to feedback and suggestions: It is important to be open to feedback and suggestions from your staff about how to navigate the pay cut and any other changes that may be necessary. This can help to build trust and foster a sense of collaboration and teamwork.

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Henry Craver's picture
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