Scaling back staff is probably the toughest step to take when trying to save a floundering business. Often we see our employees as an extension of our family, but we cannot sacrifice the entire operation to keep those employed who aren’t essential to the actual delivery of profitable services and satisfying regulatory requirements.
While office staff and line personnel do assist in the operation, they aren’t normally generating income as a CFI would. When scrutinizing your payroll budget, remember to include the full cost of the employee to your business. In addition to salary, things such as taxes, unemployment, worker’s comp, insurance, benefits, and other variables need to be included.
Instead of conducting a blanket layoff, consider cutting back an employee’s hours as an option. This may allow the employee to draw a portion of unemployment while looking for additional work or to help supplement his or her loss of income until the business picks up. Check with your local unemployment division for details in your area.
If you need the additional help with various duties, look to family members to pitch in. In addition to getting help from your spouse, there are great tax advantages to hiring your kids. With a little training and patience, in addition to answering phones, scheduling, and performing basic accounting, your teens can probably work any electronic gadget better than you, including the computers, copiers, and fax machines; younger kids can wash airplanes, empty trash, clean floors, dust, etc. They will be gaining work experience, learn more about your operation, and enjoy the extra dough.