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Navigating Coronavirus and Staff Layoffs

Contributed by: Jim Davin

The COVID-19 pandemic has had a devastating effect on small businesses, not just in America, but around the world. In order to stay afloat, many small business employers have to make the difficult decision to downsize their teams. This begs an important question: who do employers determine who to keep on board and who to let go? In order to answer, it is essential to consider four things.

1) Flexibility and Skills. 
It is logical to assume that keeping an individual with varying skills may be more beneficial during a crisis. Employers with a smaller team should be on the lookout for team members that are able to help and collaborate in several different areas.

2) Performance.
Workers whose performance has been the best at your business should be given top consideration for retention during these times of cutbacks. By not rewarding superior performance you risk causing disillusionment in your work- force: why work hard and aim high when I am treated the same as less productive coworkers ?

3) Those willing to work long hours.
It is a basic fact: with staff reduced those who do stay onboard may be obliged to work more hours to keep things running the same. Quite important here is the essential need for the employer to be up front with his or her employees about the possibility of longer hours early on rather than springing it on them down the line. Those employees interested and accepting of the reality of longer hours (and more overtime) should be given high consideration for continued employment. 

4) Seniority.
Seniority is not a main consideration in employment retention in this sort of situation but it should be accounted for in any final decision. For example if one employee has worked longer than another employee he or she should not be given preference for retention just because of their seniority. If however this employee with seniority has an equal record of excellent performance as the other employee then the tie breaker between the two workers would be length of service and the employee with seniority should be retained and the other worker furloughed or laid off. 

If small businesses in America stick to the basic moral principles such as the ones listed above, chances are good that America’s small businesses will survive the pandemic, and the possible subsequent economic downturn.