Coronavirus layoffs have hit employees hard. Unfortunately, things look to get worse economically before we turn the corner on this crisis. When employers consider cost-cutting measures, one of the first things they look at is layoffs. Before making a hard and fast decision on the topic of coronavirus layoffs, there are some important issues employers need to consider.
Layoff Issues to Consider
First of all, employers need to take a look at how serious the fiscal hit to business is, and take an educated guess regarding how long the financial crisis will last. One key thing employers need to weigh is the difficulties they may face in replacing laid off workers when things turn around and business picks up. This becomes more of a challenge when the skills of workers are more refined and specialized.
Who Has Been Hit?
Among the hardest hit by coronavirus layoffs are industries whose existence rely on people interacting. Clearly, social distancing gets in the way of those in the hospitality industry. That includes hotels, travel, restaurants, and entertainment, among others, and their bottom lines have been dramatically impacted since the advent of coronavirus. In this situation, the majority of employees do not have unique skill sets or specialized training. Although ramping up the workforce will take some effort when the time is right, finding qualified workers, even in a tight market, will likely not be a significant challenge. Layoffs in these fields, therefore, may not result in critical deficiencies when the economy turns around.
Businesses focused on manufacturing or advertising are generally impacted by any recession, as are those involved in freight and delivery. The current coronavirus layoffs crisis is no exception. Although eliminating these positions will save a company money, recognizing that these are skilled workers means that replacing them in an upturn will put you in competition with others for the best workers. It may be better for employers to look at simply reducing workers’ hours and letting workers’ compensation supplement their income during this downturn.
Alternatives to Coronavirus Layoffs
When tough times hit any business, employers are wise to communicate clearly the concerns of the company and keep employees in the loop as plans are being made. Having clear goals and expressing them openly will benefit everyone involved. In order to avoid layoffs, there are strategies that might be considered to get the business through the rough patch:
- Sharing the pain: If everyone in the company cuts back, from the janitorial staff to the CEO, it may be possible to limp along for a significant period of time. That way the business can stay intact, and be 100% ready to go when things turn around.
- Crowdsource ideas: If you open the discussion to workers, a variety of money-saving solutions may evolve as employees buy-in to the notion of saving the business.
Making the Right Decision
Coronavirus layoffs? As you strive in Sonoma County, Mendocino County, and Lake County to make the best decisions for your employees and your business during this unprecedented crisis, the experienced Santa Rosa labor law attorneys at Beck Law P.C., stand ready to assist. Contact us in Santa Rosa for a confidential consultation today.