Although it’s not always the best solution for businesses merging to lay off worker, but is sometimes the only option. Over 218,000 people in the US were laid off for at least 31 days. Merger activity had reached $4.3 trillion in the first quarters of 2021, beating the numbers from 2007.
Layoffs can also affect the number of workers on the company’s payroll. According to a study conducted by HR Magazine, firms with laid-off workers experienced a higher turnover rate than those that didn’t. Researchers noted that the more people that were let go, the more they would leave the company.
Most of the employees who stay are dissatisfied with their work environment, and they believe that their organizations’ prospects have worsened. They also said that customer service has decreased. There are some ways to help with avoiding layoffs which we will talk about in this article.
Having Colleagues Help
Talking to other business owners who may have dealt with something similar will be able to give ideas and tactics that could help.
Extending time off is a big perk for people. No matter the demographic of your company, they will appreciate the extra time off.
Similar to time off, is a sabbatical; this time off can be much longer than a typical vacation. The worker can spend this time getting more training or learning something new at a reduction to pay. Once the sabbatical is over, the worker will return to work like normal with more skills.
According to Zickerman, reducing the workweek from five to four days can reduce a company’s payroll by about 20 percent. Since workers stay longer for less money, companies don’t have to hire more once the economy begins to improve.
Swapping employees and or lending workers to another company can be beneficial. They get to learn new things that the company has to offer that can be brought back to their original place of hire.
A great tactic is to open up the conversation with employees. Being able to bring up the negatives and positives can help the workers feel included. It would be best if you also were rewarding employees and recognizing the workers that have stayed. Being open and honest with the existing employees is also an essential factor. It is known what when companies merge, there is a high chance for layoffs and talking to your employees about options and the next steps can ease their minds.