Comments on: Cut staff hours but keep the morale http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/ Editors from FSB magazine answer your pressing small-business questions. Tue, 15 Dec 2009 12:52:55 +0000 http://wordpress.com/ hourly 1 By: Ron Deutsch http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1644 Ron Deutsch Tue, 31 Mar 2009 18:32:27 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1644 The key is communication and an environment where hopefully you have already established credibility and an earned reputation of being honest with your employees. If not, there is not much you could say to EE's where they would respond positively. If you have credibility, then communicate often and openly. I believe in overcommunicating at first when you are making these decisions and hold "all hands" meetings with an open forum for questions. The EE's will probe to see if you are telling the truth. Each time to meet with EE's you set the stage for the next time. Ask for their ideas on how to cut expenses and then follow up. Show that you are trying to take all the steps necessary to preserve jobs. I used to think that cutting pay was the last resort and that layoffs were preferable. I have changed my opinion in this recession, and I think cutting jobs should be the last resort. Cutting Pay and Benefits is more acceptable because EE's do not want to lose their job or the job of a colleague. Each organization has a method of coping with tough decisions. Honestly and no surprises are the best courses of action. Good Luck! Ron Deutsch-AspenBeach Consulting (HR). The key is communication and an environment where hopefully you have already established credibility and an earned reputation of being honest with your employees. If not, there is not much you could say to EE's where they would respond positively. If you have credibility, then communicate often and openly. I believe in overcommunicating at first when you are making these decisions and hold "all hands" meetings with an open forum for questions. The EE's will probe to see if you are telling the truth. Each time to meet with EE's you set the stage for the next time. Ask for their ideas on how to cut expenses and then follow up. Show that you are trying to take all the steps necessary to preserve jobs. I used to think that cutting pay was the last resort and that layoffs were preferable. I have changed my opinion in this recession, and I think cutting jobs should be the last resort. Cutting Pay and Benefits is more acceptable because EE's do not want to lose their job or the job of a colleague. Each organization has a method of coping with tough decisions. Honestly and no surprises are the best courses of action. Good Luck! Ron Deutsch-AspenBeach Consulting (HR).

]]> By: Jenna Harrow, Los Angeles, CA http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1627 Jenna Harrow, Los Angeles, CA Tue, 24 Mar 2009 23:58:18 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1627 I, too am a small business owner, who recently had to lay off some employees. I had some advice recently that said most firms don't cut deep enough or quick enough to make a significant difference. You have to do what is best for the entire organization. If paycuts will allow everyone to keep their job, then you need to be straight with your employees. If laying off a few people, will strengthen the rest of the team's jobs, most people will support your decision. I, too am a small business owner, who recently had to lay off some employees. I had some advice recently that said most firms don't cut deep enough or quick enough to make a significant difference. You have to do what is best for the entire organization. If paycuts will allow everyone to keep their job, then you need to be straight with your employees. If laying off a few people, will strengthen the rest of the team's jobs, most people will support your decision.

]]> By: Diana Houston Texas http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1625 Diana Houston Texas Tue, 24 Mar 2009 03:02:40 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1625 Why not take it to the employees, explaining the situation. Ask them with the economey the way it is what are the best ways to reduce costs. It looks as though we will have to cut hours, and that will be across the board. What suggestions do they have that can help. Keeping in mind, you value all of them and don't want to loose anyone, that is why slashing hours across the table it the only soulution you can come up with. Why not take it to the employees, explaining the situation. Ask them with the economey the way it is what are the best ways to reduce costs. It looks as though we will have to cut hours, and that will be across the board. What suggestions do they have that can help. Keeping in mind, you value all of them and don't want to loose anyone, that is why slashing hours across the table it the only soulution you can come up with.

]]> By: Denis Brown http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1621 Denis Brown Sun, 22 Mar 2009 09:54:59 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1621 Richard, these are hard times that require hard decisions and it cannot be stressed that in such times when it's all hands to the pump, even a workforce however small needs to pull together in moments like these. The responsibility needs to be recognised by your team of workers that united you have a greater chance of riding out the storm. Communication between you and your staff is paramount for a number of reasons i.e. allaying fears of job losses, maintaining a healthy morale, being positive and not displaying doom and gloom. People still have to eat, still want a pleasant atmosphere to escape from the reality, and if you and your workers don't you may be the next statistic in the victims list. Which we all want to avoid, and can do if we stay focussed and pull together. At the end of the day the buck stops with you as it does with all employers, and to be honest until you've been an employer your staff will have no idea of the pressure you are under. Perhaps you ought to give them an insight to that so they can see and understand what is required from them, as it will be easier when they realise just how much you carry on your shoulders. One of the major problems with businesses is simply they don't communicate properly, and staff always feel left out and that's partly why they don't show the committment or interest in the business. When you communicate and you have your staffs buy-in no matter what storms you face they will be there for you and equally as long as you show character of steel at these times rather than cut and run your business will survive. I hope this helps, not just you and your business but all the other businesses that are experienceing the same right now. I am not an expert, and I don't have any degrees to my name, but I do care about people. I care about this world. Thank you for taking the time to read my message. From Denis Brown in Great Britain. Richard, these are hard times that require hard decisions and it cannot be stressed that in such times when it's all hands to the pump, even a workforce however small needs to pull together in moments like these.

The responsibility needs to be recognised by your team of workers that united you have a greater chance of riding out the storm. Communication between you and your staff is paramount for a number of reasons i.e. allaying fears of job losses, maintaining a healthy morale, being positive and not displaying doom and gloom. People still have to eat, still want a pleasant atmosphere to escape from the reality, and if you and your workers don't you may be the next statistic in the victims list. Which we all want to avoid, and can do if we stay focussed and pull together.

At the end of the day the buck stops with you as it does with all employers, and to be honest until you've been an employer your staff will have no idea of the pressure you are under. Perhaps you ought to give them an insight to that so they can see and understand what is required from them, as it will be easier when they realise just how much you carry on your shoulders.

One of the major problems with businesses is simply they don't communicate properly, and staff always feel left out and that's partly why they don't show the committment or interest in the business. When you communicate and you have your staffs buy-in no matter what storms you face they will be there for you and equally as long as you show character of steel at these times rather than cut and run your business will survive.

I hope this helps, not just you and your business but all the other businesses that are experienceing the same right now. I am not an expert, and I don't have any degrees to my name, but I do care about people. I care about this world.

Thank you for taking the time to read my message. From Denis Brown in Great Britain.

]]> By: Dale Little, Washington, D.C. http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1619 Dale Little, Washington, D.C. Fri, 20 Mar 2009 19:12:20 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1619 Great answer! And kudos to you, Mr. Ryan, for asking the question! Too many employers are anxious and allowing that anxiety to guide their actions, hence short-sighted actions that are damaging to the company in the long term. Organize regular brainstorming sessions (15-20 minutes is fine) and keep your employees involved in the partnership of increased profits and decreased expense. Be free with praise for all employees, even those that must be laid-off. Network with other business owners in an attempt to assist your future former employee in their new job search. Great answer! And kudos to you, Mr. Ryan, for asking the question! Too many employers are anxious and allowing that anxiety to guide their actions, hence short-sighted actions that are damaging to the company in the long term. Organize regular brainstorming sessions (15-20 minutes is fine) and keep your employees involved in the partnership of increased profits and decreased expense. Be free with praise for all employees, even those that must be laid-off. Network with other business owners in an attempt to assist your future former employee in their new job search.

]]> By: CoffeeAddict, Washington, DC http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1618 CoffeeAddict, Washington, DC Fri, 20 Mar 2009 18:01:20 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1618 Agreed. The so-called business school mentality of the MBS is that workers should give undying loyalty, but employers must sacrifice them for the glory of profits at all times. Workers need to start looking at employers like a cheap date: they're a fun ride, but there's always a hotter model out there to spend time with. Use the employer and then lose them. It's what they have been doing to workers for the last two decades. Agreed. The so-called business school mentality of the MBS is that workers should give undying loyalty, but employers must sacrifice them for the glory of profits at all times. Workers need to start looking at employers like a cheap date: they're a fun ride, but there's always a hotter model out there to spend time with. Use the employer and then lose them. It's what they have been doing to workers for the last two decades.

]]> By: Pat Quinn http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1617 Pat Quinn Fri, 20 Mar 2009 16:36:52 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1617 Umm I think it is much better than an unemployment check! You cannot have your cake and eat it too. Just be thankfull you have a job and quit complaing about everyone else at work. Either do something about it or mind you own business Umm I think it is much better than an unemployment check! You cannot have your cake and eat it too. Just be thankfull you have a job and quit complaing about everyone else at work. Either do something about it or mind you own business

]]> By: Theresa Schmitt,Lou.,Ky. http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1616 Theresa Schmitt,Lou.,Ky. Fri, 20 Mar 2009 14:16:23 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1616 <I> TE.Schmitt,"Who's Who," Business Partnerships Denver Door Store,Blogger>
TE.Schmitt,"Who's Who," Business Partnerships Denver Door Store,Blogger>

]]> By: TheresaSchmitt,Lou.Ky. http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1615 TheresaSchmitt,Lou.Ky. Fri, 20 Mar 2009 12:59:43 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1615 Must I remphasize from, Busness Weekly, Commentary that helping the Economy means filling retirement positions.> Must I remphasize from, Busness Weekly,
Commentary that helping the Economy
means filling retirement positions.>

]]> By: John Smith http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1614 John Smith Fri, 20 Mar 2009 04:56:15 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1614 My employer EDS (Electronic Data Systems) got acquired by HP in May 2008. Ever since, the bonuses and pay raises were frozen. In Jan 2009 HP announced 5% pay cut to all the employees. Last week, EDS announced another 10% more pay cut to all the employees. Many hard working employees prefer the lay offs better than this as they know, they will not be laid off and a lay off will clean up the house (getting rid of the bad employees). Many hard working employees also feel that cutting the working hours would have been better (like a furlough) so that they can at least enjoy the free time. What we live with now is 15% pay cut and still have to work for the same number of hours and still have to see the slacking employees are still in the house playing solitaire. Talk about morale in this situation. My employer EDS (Electronic Data Systems) got acquired by HP in May 2008. Ever since, the bonuses and pay raises were frozen. In Jan 2009 HP announced 5% pay cut to all the employees. Last week, EDS announced another 10% more pay cut to all the employees.

Many hard working employees prefer the lay offs better than this as they know, they will not be laid off and a lay off will clean up the house (getting rid of the bad employees).

Many hard working employees also feel that cutting the working hours would have been better (like a furlough) so that they can at least enjoy the free time.

What we live with now is 15% pay cut and still have to work for the same number of hours and still have to see the slacking employees are still in the house playing solitaire.

Talk about morale in this situation.

]]> By: Juan Hoffman, Mexico City http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1613 Juan Hoffman, Mexico City Fri, 20 Mar 2009 02:34:58 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1613 Dear Mr. Ryan I understand you all too well I went through the same with my restaurant recently in my country, there are no easy choices only inteligent decisions, good luck on your meeting and I hope your employees will understand the situation. The only thing I would like to add is that much of this crisis was generated in the US but with consequences worldwide, perhaps there should be tougher punishment for those responsable. Again good luck Dear Mr. Ryan

I understand you all too well I went through the same with my restaurant recently in my country, there are no easy choices only inteligent decisions, good luck on your meeting and I hope your employees will understand the situation.

The only thing I would like to add is that much of this crisis was generated in the US but with consequences worldwide, perhaps there should be tougher punishment for those responsable.

Again good luck

]]> By: Brian, Chicago, IL http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1610 Brian, Chicago, IL Thu, 19 Mar 2009 21:08:33 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1610 I love the last comment from the author, "be flexible if they have to take on a new job." If an employer is going to make the cuts then I think they have to expect to be inconvienced by employees searching for a new job or even morale being down. This comment seems to sum up the basic corporate philosophy - where the employer asks and expects loyalty from employees, even in the most difficult of circumstances, and then resorts to the easy way out of laying everyone off when times get tough. I think today's worker bees need to treat employers they way employers treat employees - it's purely business. Just have the attitude to go collect a paycheck and always look out for yourself, since an employer never will. I love the last comment from the author, "be flexible if they have to take on a new job." If an employer is going to make the cuts then I think they have to expect to be inconvienced by employees searching for a new job or even morale being down. This comment seems to sum up the basic corporate philosophy – where the employer asks and expects loyalty from employees, even in the most difficult of circumstances, and then resorts to the easy way out of laying everyone off when times get tough. I think today's worker bees need to treat employers they way employers treat employees – it's purely business. Just have the attitude to go collect a paycheck and always look out for yourself, since an employer never will.

]]> By: Martin England, Asheville, NC http://smallbusiness.blogs.cnnmoney.cnn.com/2009/03/19/cut-staff-hours-but-keep-the-morale/#comment-1609 Martin England, Asheville, NC Thu, 19 Mar 2009 16:10:07 +0000 http://askfsb.blogs.fsb.cnn.com/?p=944#comment-1609 I own a B&B and Restaurant in NC mountains and went through similar in January. Ask them if there is a flexible schedule that, while reducing their work hours, may allow them to earn maoney elsewhere for a short period (my handyman does some yardwork, a waitress who is at college to be a teacher does some child tutoring). With reasonable humility, ask them if they have suggestions as to the direction you're taking your restaurant or for ways to increase trade - they may know the local people's needs better than you. One employee said he could bring a Diesel truck club to dine once a month on a quiet night - a group I would never have made contact with! Listening to them and giving them an opportunity to make suggestions (even criticism) helps retain their interest in the business and makes them feel part of the progress. I own a B&B and Restaurant in NC mountains and went through similar in January.
Ask them if there is a flexible schedule that, while reducing their work hours, may allow them to earn maoney elsewhere for a short period (my handyman does some yardwork, a waitress who is at college to be a teacher does some child tutoring).

With reasonable humility, ask them if they have suggestions as to the direction you're taking your restaurant or for ways to increase trade – they may know the local people's needs better than you. One employee said he could bring a Diesel truck club to dine once a month on a quiet night – a group I would never have made contact with!

Listening to them and giving them an opportunity to make suggestions (even criticism) helps retain their interest in the business and makes them feel part of the progress.

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