In times of economic difficulty, companies often face tough decisions when it comes to retaining employees. Layoffs can seem like the only viable solution to cut costs and survive financially.

Fortunately, there are alternative strategies that companies can employ to avoid layoffs and increase job security for their employees.

1. PRIORITIZE HIGH ROI.

Enhance productivity and company growth. Thus, the company culture must foster upskilling, development, optimization, and innovation of employees who play an active role in these operations.

2. ENCOURAGE NETWORKING AND FLEX-TIME WORK.

In a tough economy, companies can work to prevent layoffs by:

1. building business and ensuring employees have time allocated to networking, thought leadership, and more

2. auditing your costs and pulling back on expenses you may not even know you have,

3. remaining people-first by sourcing your employees for ideas such as flex-time work options.

3. REDUCE YOUR OVERHEAD

Implement cost-saving measures that do not involve reducing staff, like reducing overhead, implementing process improvements, and renegotiating contracts.

4. CREATE JOB-SHARING PROGRAMS.

Initiatives like this help businesses may save money on payroll without having to let go of their workers, and workers can retain their jobs and benefits while receiving a smaller income.

5. OFFER A SABBATICAL.

Offer a sabbatical for a few months, and up to a year to lower salary overhead and reduce costs while providing an upskilling stipend.

6. INVOLVE EMPLOYEES IN THE DECISION.

Monetary compensation is not necessarily the “be all—end all” with your employees. Find out what is really important to them. Would flex time and fewer hours make them happy? Maybe give them a voice so they feel they have a stake in the company’s success.

7. TRY A NEW BUSINESS MODEL.

Shift from a traditional corporate model, where leaders hold all the power, to self-organized teams where employees are empowered to make decisions and are driven by a strong company purpose.

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"Hiring the right people (not the best people but the right people – those ideally suited for your culture and who possess the technical skills and the talents required to handle the job, as well as the work ethic you demand), and you treat them better than another employer promises to treat them for performing in a similar role, you won’t need a retention strategy because your people aren’t going to leave."

How to Do It:

1. Do everything possible to hang on to your people, especially those you consider your ‘top performers’.

Prioritize retaining top performers by offering support and assistance, even helping them secure temporary employment if necessary.

2. If you must furlough people, do this on a one-to-one basis, not via mass email or text, God forbid!

Handle furloughs on a personal level, maintaining open communication and expressing genuine concern for employees' well-being.

Remember this; The way you’re treating your current employees through tough times is being recorded for future playback by all the candidates you want to recruit when this crisis is over!

3. Examine, refine, and recalibrate your hiring process.

Author included dozens and dozens of best practice examples from clever employers in his book. I invite you to download FREE 3- chapter sample featuring the chapter on what onboarding should look like in your organization.

Don’t wait for tough times to end to focus your attention on staffing. Plan ahead; it wasn’t raining when Noah built the Ark!