Layoffs : Fashion Statement or Real Need (Exploring Alternatives)

“Lay Off” has become the most straightforward solution for companies to cut cost, specially start up.

Why should "only employees" be the casualty for the short-sighted vision of the leader and his aspiration for quick exponential growth ?

Many businesses face the difficult decision of cutting costs to maintain financial stability. While layoffs may seem like the most straightforward solution, they can have detrimental effects on employee morale, productivity, company culture and brand of the company to attract better talent when rainy days are over.

If a company is laying off 200 people with average annual salary of Rs 10 Lacs, then it will save Rs 20 Crs !! Does only lay off really solve the problem in the long term?

I may be wrong but personally and strongly feel that there are better and innovative ways which can be tried to save only employee casualty as well as brand of the company.

1. Be transparent on how much needs to be save and Crowdsourced Cost-Cutting Ideas: :?There are many areas to cut cost in an enterprise and employees may provide idea and implement them to save more than actually planned. Cross-functional teams can brainstorm to find areas and implement initiatives that can lead to significant savings, leveraging the collective knowledge and creativity of the workforce.

2.?Salary Cut for all: 75% or even 50% salary will be satisfactorily enough for employee to run their family, pay EMIs than zero. The performance & productivity can be measured to ensure it is not going down. May be, some of them would separate anyways.?

3. Cut Cost on Non-Essentials: Is it fare to lay off 200 employees and use celebrities as brand ambassadors and pay one person more than the cumulative cost of 200 employees annual salary ? Is not 200 employees will better brand ambassador than one celebrity with a tag of non laying of company.

4. Flexible Work Arrangements: Implementing flexible work arrangements, such as remote work options or compressed workweeks, can reduce operational costs associated with office space, utilities, and other facilities. Employees may appreciate the flexibility and continue to contribute effectively to the company's success.

5. Cross-Training and Skill Development: Invest in cross-training programs to enhance employee skills and versatility. This approach ensures that employees can take on additional responsibilities during peak periods, eliminating the need to hire temporary staff or resort to layoffs.

6. Borderless Talent: Can few companies come together to collaborate and use lean period manpower of a company during their peak period and vise versa? This can also be during norms times to ensure high engagement of employees and building multiple competencies.

7. Employee Volunteering for Reduced Pay: Consider implementing a temporary program where employees can volunteer to reduce their working hours or take a temporary pay cut in exchange for maintaining job security. This approach allows for shared sacrifices during challenging times and also build collaboration and empathy for fellow colleague for the salary is mean to end agony of the family.

While economy uncertainty or funding winter poses significant challenges, there are creative and innovative strategies that companies can employ to save jobs without resorting to immediate layoffs.

By focusing on efficiency, flexibility, and collaboration, businesses can navigate these tough times while retaining their most valuable asset—their skilled and dedicated workforce.

A job is not only a job but hope of family, the heartbeat of parent, education for kids and pride of the person.?

There is always a better way. I am sure we all can think more and find more solutions to this problem. Happy to learn your views and ideas......

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