The devastating effect of the corona virus pandemic is far-reaching. The entire world is suffering from the consequences of this beast-virus. Businesses of various types and sizes have been badly affected and the economy has become uncertain. One of the best ways to press for business survival in this season is to look for ways to cut overhead costs drastically.

Two major methodologies have proven a powerful combo when it comes to combating the far-reaching effects of the corona virus on businesses. This post will focus on employees restructuring as one of the methodologies. The second one which is outsourcing will be explained extensively in subsequent post.

Employee Restructuring – What Does It Entail?

The cost of maintaining a workforce constitutes one of the major cost incidents for any company or business. Therefore, adopting effective ways to reduce this cost especially in these times of grave financial crisis will be a big plus. Employee restructuring is a great solution in this case – it is one of the major solutions and involves the following;

• Unpaid Leaves – A company can encourage its workers to go for unpaid leaves. Don’t forget that this is not by coercion but the employee has to accept it willingly. Especially during this corona virus period, employees may not think twice in accepting this offer, as long as they have the assurance that their job is secured and they can get their full salary. It is important that this process is conducted legally – there should be a written agreement that the employee must sign.

• Reduced Salaries – Right now, with millions of people laid off already, it is likely that many employees would rather accept half salary with fewer employee benefits than lose their jobs completely. However, you have to be open and honest in this matter.

You should let your employees know how bad the company’s financial situation has become, which is the reason for this line of action. This way, it won’t appear as though you are taking advantage of their threatened job situation to cut their salaries and benefits.

• Fewer Work Hours – You can also reduce the number of work hours for your employees to help you keep costs at bay. Again, many employees would rather accept this option than become one of the millions of people who do not have a means of getting income right now. It’s a terrifying situation they don’t want to even think of.

Besides, reduced hours offer flexible work option to help employees do some other side businesses with the extra hours. However, just like the case of unpaid leave, proper documentation and legal work is necessary.

Finally, a company can resort to layoffs if the financial situation is about to choke its existence to death.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams