You might want to eliminate unnecessary expenses that are hurting your small business, but you probably fear what your employees will think. We have a few steps that you can take to help keep morale up at your business while cutting costs.
1) Communicate. You should always be open and honest with your employees. Let them know how you arrived at your current financial situation and your plans to get out of it. Show them that you care by throwing yourself into the process, whatever it might be, instead of relying on them.
2) Tap your best resource. Your employees most likely know the day to day activities of your business better than you do. This means, they know what you might be able to do to save money. Let them know the company is struggling and ask them where they think money is being spent unnecessarily.
3) Add an extra hour. Instead of axing your employees to save money, you can ask them to work extra time. If they know how serious the situation is they will want to help out to ensure their job security in the future. You might not be in a place to pay them for the extra time but you can set up some type of incentive program for when business starts to pick up. Be grateful for your employees when the help out, thank them often.
If you are facing a financial situation, don’t be ashamed and try to hide it from your employees. They are in it with you. This is something that happens to small businesses and can be fixed. When you deny it everyone suffers so be open, be honest, and you can be successful.
How do you keep your company morale up?