Restore Employee Trust After Lay-off/ Pay Cut With These Best 5 Approaches

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Pay Cut With These Best 5 Approaches

Winning someone over once you have let them down is a huge challenge. Things are hardly any different when it comes to your employees if you have caused even a little trouble in their professional lives. This is about the tough times when you can’t manage your business expenses well and face hardships in sailing through the rough market sea. For instance, the current lockdown scenario is such that every employer is finding different ways to keep generating enough revenue for their organization to stay afloat.

The pandemic is giving a hard time to the corporate sector for which the working professionals are paying small prices. Small businesses that are on the verge of collapsing have fired employees and the medium/ large enterprises have adopted HRMS software to automate processes or measures like layoff/ salary cut to recover from the losses. Quite apparently, most of the people are not taking this very well. 

So, let’s have a look at the 5 approaches you can follow to regain the trust of your employees and make them dream of a better tomorrow. But first, we will understand what these two terms mean:

What is Layoff?

A layoff is the term used to describe a situation in which employers suspend a group of employees temporarily or permanently terminate them. This action is taken by the business owners when they decide to downsize the company, reorganize the workforce, or for other business reasons. 

What is Pay Cut?

As the name suggests, a pay cut is the phenomenon of reducing the employees’ salaries by a specific percentage. This is done when a new business budget is prepared when the employer wishes to save or recover from business losses.

How To Make Up For It?

There are a number of sure-shot ways to restore the fading faith of employees in your organization. Mentioned below are the 5 best of them:

  • Maintain A Transparent System

Everything from why you have made such a difficult decision and how you are going to implement it should be informed to the employees. You can also integrate HRMS software to maintain transparency. Be it the daily deliverables, individual performances, impact of the situation on business or the planning to cope up can be shared with the employees using the software to rebuild the belief system. Give them the vision to hold on to.

  • Strengthen Your R & R Game

It is quite obvious that monetary compensation is not an option since you are already struggling with managing the budget. So, to boost the morale of employees, start rewarding them for every small accomplishment in these tough times. When they get recognition and motivation for the work, performance and productivity will automatically go up. As a result, the happiness quotient will also increase among the employees.

  • Adopt Empathetic Communication 

In order to compensate for the pay cut, show them that you still care. There must be proper communication between the manager and his team. Offer help and suggestions on a personal level and provide assistance in matters related or irrelevant to work.

  • Prioritize Employee Engagement

This is the biggest asset you can use to brighten up the mood of your employees in dark times. Focus all your energy on employee engagement. A top-notch HRMS software like HROne helps to take care of this aspect. The features of mood bots, chatbots, employee self-service, user-friendliness and other improve employee experience altogether.

  • Start Employee Exchange Program 

Many companies are adopting the way of exchanging their employees with that of another organization for the time being. This is done to break the monotony, enhance employee learnings, improve their exposure, or during a pay cut. Ultimately, the expenses are covered and your workforce also comes out happier and more enthusiastic.

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Kajal Sharma

Kajal Sharma is a Technology Enthusiast. Having completed her Engineering Degree, she keeps abreast of the latest technology trends in the market. She has an enriching experience of many years in Content Writing & Editing and Content Marketing. Besides believing writing to be the strongest form of expression, she finds solace in music and can hum a few bars herself!

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