Here is a tough call–how to cut costs and at the same time retain your valuable employees. With the economy being what it is, it is necessary for a business to cut costs wherever it can. But then if you lose your valuable employees you will be losing the people who can see you through the rough patches as well as a good one. Then, when the economy does turn around you will find yourself wanting for employees with the skills and talents you need for ramping back up.
There are two additional considerations to bear in mind. Who do you have to stand in for the duties or your more talented workers? And if you do let them go, chances are they may turn up working for your competition. Not a happy thought. Not only are they skilled enough to be recruited, but chances are they know your business from the inside out and can provide valuable business intelligence to your rivals.
According to an article in the Modesto Bee, two thirds of employers are trying to retain their employees. They may be cutting back on the work week and reducing salaries, but at least they are trying to keep their workers working. According to the article, most employers believe if they keep their workforce intact they will be in a much stronger position to recover when the economy does improve. Meanwhile, as for when that turnaround will come, things remain foggy.
It is notable that most employers are struggling to keep from laying off their staffs. Perhaps in some cases they will consolidate positions. But most are paying heed to the inevitable economic improvement. Which in and of itself is a good sign and a reason for optimism.
