It's that time of the year - bonus payouts are at the end of January and the game of musical chairs begins. How do you retain your employees when earnings are down?
There are a few strategies a company can use to try to retain its employees when earnings are down:
1. Communicate openly and transparently about the financial situation. Employees will be more likely to understand and support cost-saving measures if they know what’s going on.
2. Offer training and development opportunities. Investing in employee skills can help them feel more invested in the company and make them less likely to look for opportunities elsewhere.
3. Consider flexible work arrangements. Allowing employees to work remotely or have a more flexible schedule can help reduce turnover.
4. Show appreciation for your employees. Recognizing and thanking employees for their hard work can go a long way towards boosting morale.
5. Consider temporary salary reductions or freezes rather than layoffs. This can help reduce the impact on your workforce and may be seen as a more fair solution.
6. Look for ways to cut costs without directly impacting your employees. For example, a company might negotiate better rates with suppliers or reduce unnecessary expenses.
Kelly Smith O’Hara, Head of North America
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