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Exploring Alternatives to Temporary Layoffs

A recent discussion with a small business owner had discussed the option of temporary layoffs. Saying that he needed a ‘break’ from employee wages during a slow time he thought temporary layoffs would be an option over downsizing. However, he was very worried about the impact the layoffs would have on his relationship with his employees.

Temporary layoffs may be an economically viable way to manage workplace slowdowns. Some organizations, with the honest intention of bringing employees back to work will use temporary layoffs as a way to save money while signalling to employees an intention to bring them back to work. Human capital is usually your biggest expense but also your most valuable resource as such anything that impacts your relationship with your employees should be carefully considered.

The Downside of Temporary Layoffs

In a recent HR Insider article, Temporary Layoffs, we explored the realities of ensuring your temporary layoffs are legally sound. Even when properly manag...

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