Companies around the globe are announcing major layoffs because of the economic impact of COVID-19. Even if you’re a leader who has held onto your staff thus far, you’ve probably considered letting some people go. Before you head down that difficult route, I encourage you to look into viable, sometimes unconventional, alternatives to downsizing a workforce.
It's not just about avoiding a layoff (although that in itself is a strong motivator). Businesses that handle this unprecedented situation well by retaining their superstars will bounce back faster and enjoy increased levels of employee loyalty.
If you're poised to initiate reductions, wait until you have no other option and investigate how to avoid workforce reduction. Getting rid of workers may ease the short-term strain on your budget, but letting go part of your workforce has long-term effects.
Why layoffs leave lasting wounds
Research shows that letting go of just 1 percent of your team can significantly decrease the engagement, performance and job satisfaction levels of your remaining staff. Why? The ones who are left experience survivor guilt and feel they're expendable when it comes to the company making ends meet. Sure, you’ll still have the rest of your workers, but they're apt to lose their sense of faith, loyalty and confidence in your company after saying goodbye to co-workers.
So regardless of what you may have heard or read, you don’t want to trim your workforce. Instead, look at the coronavirus pandemic as an opportunity for your corporation to stand out and illustrate humanity and compassion. The best way to do that is to learn how to cut costs without laying off employees (and then apply those cost-cutting strategies ASAP).
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