Staff reductions have become commonplace once again in our industry.  The steps you take after those staff reductions are critical to the future success of your firm.

1. Reassure the Staff

The remaining staff is understandably upset and angry that their co-workers have been let go.  Of course they are also relieved that it didn't happen to them.  What they need right now is some reassurance that the reductions were not made with malice -- but with an eye towards preserving jobs and the company for the long-term.  Younger staff who have experienced nothing but good times will need special attention

2. Ask Employees for Cost Saving Ideas

When business is good overhead expenses tend to grow and fly under the radar of accountability. Your staff knows where the money is being wasted -- so ask for their help.  You might be surprised at their ideas and the sacrifices they are willing to make.

3. Change the Voicemail

Make sure to immediately change the voicemail password of all terminated employees.  On more than one occasion I have connected to voice-mails that said something along the lines of "I can't take your call because I have been laid-off".  Sometimes the voice mail was not that polite.  Don't let this happen to you.

4. Cancel the Cell Phone

If your employees have company cell phones, be sure to get them returned and cancel the plan.  Even if there is a termination fee you will generally save money in the long run by cancelling

5. Sell/Donate or Recycle

I am not sure if there is a market for used smart phones but if there is you can try to sell them.  In the alternative they can be donated to a worthy cause or a t least recycled.  Don't let them sit there gathering dust.

6. Handle the Paperwork

Be sure to handle all of the paperwork immediately.  Whether it is responding to an unemployment insurance claim, COBRA insurance do it quickly and accurately.  The departing employees have enough stress dealing being out of work.  Do your best to make the transition as easy as possible.

To be continued next issue&..