SHUTTERSTOCK ILLUSTRATION
Here are some other ideas for saving your business without going broke .
Consider shutting down your offices
You didn ’ t mention what your business does . If it ’ s a manufacturing facility , then shutting down won ’ t save you money . But if it ’ s knowledge work and everyone can work from home , you should strongly consider closing the offices forever and saving rent money .
You can still get together from time to time — meeting space is relatively inexpensive . If you go this route , you will need to decide if you want to allow employees to move out of state .
California is notoriously expensive , and lots of remote workers have fled to cheaper areas and kept their California salaries . Some big companies have looked at lowering wages based on location ( which may help you ) but may turn your employees off . Keep in mind if you allow employees to move out of the state , you ’ ll have to make sure you comply with all the laws in the new state . Employment law depends on where the employee works , not where the company is headquartered . It ’ s perfectly reasonable to tell people that while they can work from home , they need to stay in the state or even the area to attend monthly meetings .
Ask your employees how to cut the budget
It won ’ t surprise your employees that salaries are rising and their paychecks aren ’ t . Don ’ t worry about saying to them , “ I want to pay you more , but we don ’ t have the budget . Suggestions ?”
Your employees may have suggestions for budget cuts in places you never considered . Sometimes it ’ s small things that seem insignificant on their own but can add up . During boom times , many companies felt pressured to have perks that companies like Google had and provided free lunches , sparkling water and beer on tap . Who needs on-site dry cleaning if everyone works from home ?
People want raises , but that ’ s not the only thing they want . Flexibility ? Good management ? Opportunities for growth and development ?
Ask your employees what ’ s more important to them than money
This isn ’ t a stupid question . People want raises , but that ’ s not the only thing they want . Flexibility ? Good management ? Opportunities for growth and development ? These things all have very real value , and if you ’ re honest with your intentions , employees will support you if you can provide these things .
You must not be just all talk . If you promise growth opportunities , you better create plans for your employees and follow them . If you promise flexibility , you can ’ t yell at them for taking advantage of it . While you probably can ’ t afford management training to improve your staff ’ s managerial skills , plenty of free online resources and libraries have tons of management books .
Make sure you have a vesting structure so they can ’ t take their stock and walk out the door today . A 3-5-year vesting structure can be a powerful retention tool , especially when you combine it with making your business a better place to work .
You aren ’ t the only company that struggles with keeping employees right now . The “ Great Resignation ” is a real thing ! And competing with companies that can offer big salaries makes it even harder . But you can compete by making your company the best place to work , cutting the fat and listening to your employees .
Suzanne Lucas spent 10 years in corporate human resources , where she hired , fired , managed the numbers and doublechecked with the lawyers . On Twitter @ RealEvilHRLady . Send questions to evilhrlady @ gmail . com .
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November 2021 | comstocksmag . com 25