California businesses received a glimmer of hope in these difficult times as the state unemployment rate FELL in April to 11%, down slightly from an all-time high of 11.2% in March. Despite this good news, layoffs continue at record pace, and employers must be well informed to avoid making termination mistakes. In our first post, we would like to highlight some key points employers must consider before downsizing.

Consideration #1 – Alternatives To Downsizing:
There may be other alternatives to saving money during a challenging economic time.  Consider the following:

1. Freeze new hire positions, pay or bonuses
2. Reduce salaries, fringe benefits, or 401 (k) matching
3. Reduce work hours or adopt alternative work schedules
4. Make selective, performance-based terminations
5. Provide incentives for early retirement
6. Telecommuting
7. Job Sharing

These cost-cutting options will allow the organization the ability to retain talented employees who are familiar with the goals of the organization, while not being placed in the position to hiring and training brand new employees once the economy bounces back. If effectively communicated, employees will appreciate an organization that works diligently to look for alternatives to downsizing.