Blog entry by Efe Rhima
crisis period such as the covid-19 pandemic the world is currently battling,
most companies affected immediately embark on layoffs in order to stay afloat. But
it would surprise you that companies can still make marginal profits by taking
other actions rather than Layoff.
The management of any company affected by the pandemic should as much as possible put into consideration the welfare of their employees before making layoff decision. After being loyal to the company for a period of time, would it be the right decision to let them go in order to maintain profits. How would they survive in the harsh economy environment especially for employees in countries without government unemployment benefits?
The time to make sacrifices as management is here. I strongly advice pay cuts rather than layoff. Management staff can take a chunk of the pay cuts as sacrifices to ensure survival of their employees and the organizations as well. We have also seen in research that companies that were able to retain their staff during unfavorable economic conditions found it easy to gain back traction when the economy rebound. It is also expensive to train new staff after the old experienced ones have been let go.
This act of giving pay cuts rather than layoffs during this pandemic period would create a stronger bond between the company and their employers increasing Loyalty and dedication to work.