Reduce staff: How to deal with it?

  • Jul 26, 2021
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To all the Business They like to grow and be self-sufficient, after all the main objective of companies is profit, and any business, whether large, aspires to this As a small, however, the company does not always go as the employer would like: the reduction in demand, the appearance of strong competition, situations national or international economic, or simply a bad financial decision, among others, can cause the company to be forced to take measures in order to reduce costs.

In some cases, cost reduction may go through reduce staff of workers, a decision that is not easy for the company, but which will not be easy for employers to accept either.

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In this article you will find:

How to deal with reducing staff?

reduce staff
  • Analyze the company.

First of all, you have to know the companies and their real needs for the next few years, in addition, you have to take into account the skills and time that each of the workers have been in the company, as well as the cost that their dismissal will imply.

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To the reduce staffNot all departments can be considered equal, and not all departments can be reduced, for example by 10%, unless that 10% is really unproductive. Departments like marketing or sales have a high value in good times, but especially in bad times, however, others such as production, if the company is going through a bad times, they are probably the ones that receive the least work, and they can always be rehired in times of growth or season high.

Knowing what the percentage is when reducing the workforce and how many will remain is the best way to honestly face the reality of layoffs.

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  • A single stage.

Reducing the workforce is difficult for workers, but also for employers and for those who stay. Each one of the group reductions undermines the spirit of the company, precisely for this reason, a realistic analysis of the company to know the real needs of dismissal is the best solution.

It is better to fire 20% in the first stage than to settle for 10% to minimize the problem of layoffs and then be forced to cut 20% more, because the company cannot take over expenses.

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  • Reduce staff: Direct, sincere and in a group.

It is difficult, but the best way to deal with the situation is to be honest and direct. Talking with the workers in a group and explaining the situation in a real way will make it easier to reduce the workforce.

  • Back to work: the sooner the better.

Once the downsizing is done, it is important to reorganize the new group so that production begins as soon as possible.

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