There are layoffs aplenty, as we all know. Since this economic debacle first began a reported 2.6 million jobs have been lost. Over half-million were lost just last month. In reality, there are probably more job losses than what has been reported. That’s the way it always seem.
But employers are trying desperately to keep their people. Employers are looking for alternate means to cut back on business expenses. they are invoking pay freezes and in some cases pay cuts. Some employers are utilizing a four day work week and others are invoking mandated furloughs without pay. Anything to stay afloat in this ridiculously tough economy.
According to the New York Times, The Gannet Company, the world’s largest newspaper publisher, will be the next major company to mandate its workers take a week off without pay. This coincides with Gannet’s efforts to avoid layoffs. Gannet retains 31,000 employees in all, and most of them will be on the unpaid holiday. For those in the unions, Gannet will ask that they voluntarily take their leave.
Obviously, more companies will invoke the unpaid furlough plan. While it is painful to its employees, it is not nearly as painful as firing staff. And while it is expensive to retain a workforce through a tough economy, it is very expensive to fire and rehire, based on retraining, preemployment screening concerns and the rates of attrition. Simply put, not everyone will be around when you want them back to work.
In all, most companies are making admirable attempts to retian their staffs. Unlike in other periods where the first thing any business did was layoff employees, this time around businesses seem to know we are all in this together. Do what you can to cut other expenses first, before you send someone home without a job.
