Want to avoid Layoffs? 3 steps to implement Salary cut

Want to avoid Layoffs? 3 steps to implement Salary cut
Reading Time: 2 minutes

Positive cases of coronavirus AKA COVID-19 seems to be in no mood to stall. On the other side, the economy of the nation has suffered a lot. Due to the pandemic caused, industries and businesses are forced to go on a halt and stop their productions to prevent the chain.

This led to unwanted (but expected) employee layoffs due to severe financial and business loss to the industries. However, the ministry had advised employers to not fire or layoff their workers amid job insecurities and lockdown. Instead, it is a sole responsibility to support your people with better opportunities or options like paying the pay in instalments.

This blog reads out the right way to implement salary cuts during the pandemic. Avoiding layoffs or even worse could be appreciable.

Also read – How to keep your employees motivated after Layoffs?

Below are the guidelines:

  • Promote overtime

To build a win-win situation and not suffer the salary cut situation, you can promote overtime wage at your base. When the workforce works for few more hours and wins you more production and deliverables, the loss would be less.

Salary cuts may be curbed through this. If not curbs totally, it may bring at least some relief. A salary cut or layoff should be the last option for employers. First, we need to develop ideas to not fell for such a situation.

  • Special considerations to frontline

Always consider your staff people and low-wage workers while calling for such decisions. Take a note of what your union suggests. Salary cuts for your front liners and lowest tier may be a huge impact on their lives.

What best could be done here is, decide cut percentage based on earning. Like deep cuts for managers and leaders and so on. This will create a good leadership example and help keep your people retained.

  • Instead, Instalments!

If the above tips seem to be not working or doesn’t sound great, you can go for paying salary in instalments and reduce the burden off your head and also employees have no loss here. just a compromise. Employee support is also expected at such circumstances.

This were some top ways to practice such instants. Layoff is never a good idea. Try learning the aforementioned ideas and set right example!

To know more about how Pocket HRMS solution can help you with better HR management, follow this column!

Also, write to us at – sales@sagesoftware.co.in

 

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