Employee Cut vs. Salary Cut

Small business owners need to be aware of the frustrations and concerns of their employees during this economic downturn.  Owners must think carefully and act quickly.  Keeping a small business “alive” today is a struggle, but what if employees do not want to stay with your company because they are scared of a job cut?  Your business could go from running strong to barely breathing if your employees do not have your trust.

You want your employees to be loyal and to feel safe with you right?

Here are some key points that will keep that knot of trust tight.

•    Communication is vital.  Let your employees know how the business is doing.  Hold meetings in which the owner can answer questions.  Don’t wait until there is a pay cut or layoff; ask the employees ahead of time if they would be willing to take a pay cut to save the job.

•    Give acknowledgement and show appreciation.  Allow employees to take an extra day off or to go home early.  Remember if there have been layoffs, other employees take on the additional responsibilities and can easily get burned out.  Also tell employees that they are doing a great job and ask them if they have any concerns or questions.

Loyalty in a small business goes a long way.  Just as you might be suffering with your business so might your employees’ lives.  Keep their trust and keep your company!