The Mindful Leadership Blog

Just In! Avoid another RIF

December 2nd, 2020

What’s hot?

Many small and medium-sized businesses have instituted one (and in many cases two or three) reductions in force in order to remain viable during the current economic crisis. The ensuing rise in employee workload and drop in morale can lead to the demise of the business.

So what?  

Approximately 60% of businesses that closed during the crisis won’t be reopening, according to Yelp’s Economic Impact Report released in mid-September.

 

 

 

 

 

 

 

 

 

 

What to do?     

Instead of reducing your workforce, reduce middle and senior level management salaries (to be reimbursed when business regains health).

How?  Meet with your management team. Present the cold, hard facts regarding what is necessary for survival. Ask for their help. Propose a couple of plans for a temporary reduction in salary and seek their input.

Discuss how to communicate to their teams – emphasize complete confidence in the company’s ability to weather the temporary setback and belief that a short-term sacrifice on the part of the leadership team will have a long-term payback in terms of continued employee commitment, retention and the future of the business.

What is the payoff? Survival and increased morale and employee loyalty.

Need assistance helping your leaders or organization take the courageous steps that unlock hidden potential and create significant and lasting change?  Contact us.

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