The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People

Key Principles

• Handled poorly, layoffs damage the morale of survivors. In addition, they can provoke violence and negative public exposure, which makes rehiring harder in the future.

• Those remaining must be encouraged and rewarded to stay through the bad times with a combination of strategies, including financial compensation and other forms of rewards and recognition.

• It is wise to implement a public relations campaign to explain the company’s need for layoffs.