{"id":450,"date":"2020-06-01T07:24:36","date_gmt":"2020-06-01T07:24:36","guid":{"rendered":"https:\/\/recruitment.grabjobs.co\/?p=450"},"modified":"2022-02-21T05:04:14","modified_gmt":"2022-02-20T21:04:14","slug":"9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn","status":"publish","type":"post","link":"https:\/\/recruitment.grabjobs.co\/9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn\/","title":{"rendered":"9 Ways SMEs Can Manage Staff Cost During the COVID-19 Downturn"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"450\" class=\"elementor elementor-450\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2935097 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2935097\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3345b1d3\" data-id=\"3345b1d3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-010138b elementor-widget elementor-widget-text-editor\" data-id=\"010138b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The COVID-19 lockdown measures are hitting the economy hard, particularly SMEs and startups. Was your business prepared for a crisis? If not, you need to act fast and adapt to the new reality. We compiled 9 ways that SMEs and startups can manage their staff cost and ride through the downturn.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>If your business has enough cash reserves, you may be able to keep all your staff full-time. This article is for companies that cannot afford that option and need alternatives. According to a <span style=\"color: #f15e5f;\"><a style=\"color: #f15e5f;\" href=\"https:\/\/hrexecutive.com\/how-cfos-are-planning-for-the-worst-hoping-for-the-best\">study by PWC<\/a><\/span>, more than 40% of companies expect some form of staffing change.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b721e68 elementor-widget elementor-widget-heading\" data-id=\"b721e68\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">9 Ways You Can Control Your Staffing Cost During a Downturn<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-08fddcd elementor-widget elementor-widget-heading\" data-id=\"08fddcd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">1. Freeze hires<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d9e579 elementor-widget elementor-widget-text-editor\" data-id=\"2d9e579\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>During a period of great uncertainty, it is wise not to make new hires unless the life of your business depends on it. You don\u2019t want to add more cost to your business. Pause any hiring plans until you have more clarity on where the economy is going.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f197a6 elementor-widget elementor-widget-heading\" data-id=\"2f197a6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">2. Reduce salaries (with or without payback)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eee2a96 elementor-widget elementor-widget-text-editor\" data-id=\"eee2a96\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>With your employees\u2019 understanding and consent, you can amend your employment contract to reduce salaries. Make sure you communicate with them that this is only a temporary measure until business picks up again otherwise morale will take a big hit. If your business permits, you could also offer to pay the difference in salary reduction as a year-end bonus.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a335e9a elementor-widget elementor-widget-heading\" data-id=\"a335e9a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">3. Restructure salaries with stock options<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-927d042 elementor-widget elementor-widget-text-editor\" data-id=\"927d042\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>To make your employees feel more involved in the business, an alternative to the above point is to give them Company Stock Options to offset the reduced salary. As an example: restructuring salaries for the next 4 months to 60% cash \/ 40% stock options, with a stock vested period at the end of the year. The lower the cash, the more stock you could give, for example 40% cash \/ 80% stock options.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a11c7a3 elementor-widget elementor-widget-heading\" data-id=\"a11c7a3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">4. Reduce working hours<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-90441d3 elementor-widget elementor-widget-text-editor\" data-id=\"90441d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Since your business is likely to have a reduced level of activity, you could reduce working hours of your staff during this period. For example going from 40 hours full-time to 20 hours part-time.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c7829e8 elementor-widget elementor-widget-heading\" data-id=\"c7829e8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">5. Leave of absence<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7e574ae elementor-widget elementor-widget-text-editor\" data-id=\"7e574ae\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>If your business is coming to a halt and you need to go on hibernation mode, then keeping part-time or full-time staff may not even be an option for you.\u00a0 In that case you could ask them to go on a voluntary leave of absence, or unpaid leave.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-265e92e elementor-widget elementor-widget-heading\" data-id=\"265e92e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">6. Delay pay increases and bonuses<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-99701de elementor-widget elementor-widget-text-editor\" data-id=\"99701de\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Did you commit to pay increases, bonuses or commissions? The reality is you might not be in a position to do so anymore. If that\u2019s the case, communicate with your staff. Let them know that you are still committed to your engagement but the payout will be delayed due to the situation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a5dcd04 elementor-widget elementor-widget-heading\" data-id=\"a5dcd04\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">7. Lend your resources to other business<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ce94fb elementor-widget elementor-widget-text-editor\" data-id=\"5ce94fb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Your industry of activity may have gone down, but others may have gone up. Think about contracting your staff to another company for a temporary project. If you run a restaurant, could you lend your waiters to food delivery platforms? If you currently have an IT team of developers, could you outsource them to other projects?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9c2dc6b elementor-widget elementor-widget-heading\" data-id=\"9c2dc6b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">8. Making tough layoff decisions fast<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ef9c1fb elementor-widget elementor-widget-text-editor\" data-id=\"ef9c1fb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>If you are facing cashflow issues, you most likely will need to retrench staff. For the benefit of everyone, you should make this difficult decision fast and early rather than drag it. In times of crisis, you need a team with strong work ethics, that performs 110%. If you are to pick your \u2018stay team\u2019, select those you know are 110% committed. <a href=\"https:\/\/www.nfx.com\/post\/28-moves-survive-thrive-downturn\/\">As Pete Flint from NFX points out<\/a>: \u201cafter the layoff, be sure to tell the remaining employees how painful it is to lay people off, and that you believe this will be the only round of cuts\u201d. \u00a0 This will give your remaining team peace of mind.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-95eb7c5 elementor-widget elementor-widget-heading\" data-id=\"95eb7c5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">9. Automate tasks<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c349e3b elementor-widget elementor-widget-text-editor\" data-id=\"c349e3b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Now is the time to reflect on your business and figure out which tasks you can digitize and automate. Automation is an excellent way to save cost by replacing repetitive and time-consuming manual tasks that take up a lot of your resources. Replace people-driven processes with technology wherever possible and shift your staff resources to more productive tasks.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>How long will the crisis last? Nobody knows for sure, there are too many unpredictable variables. <strong>The best you can do for your business is to focus on the variables you can control<\/strong>, such as cost. Plan for a worst case scenario where you achieve only 20% of your target revenue over the next 6 to 9 months. You need to keep your operations as lean as possible.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Once the economy picks up you\u2019ll most certainly need to hire again to grow your business. To prepare for that, ensure you have cost-efficient hiring solutions in place.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>When the crisis hits you should know how to survive -managing all the extra cost is vital, including the staff cost which you may lower.<\/p>\n","protected":false},"author":5,"featured_media":14490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,27,31],"tags":[],"class_list":["post-450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-trends","category-tech-trends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>9 Ways SMEs Can Manage Staff Cost During the COVID-19 Downturn<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/recruitment.grabjobs.co\/9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"9 Ways SMEs Can Manage Staff Cost During the COVID-19 Downturn\" \/>\n<meta property=\"og:description\" content=\"When the crisis hits you should know how to survive -managing all the extra cost is vital, including the staff cost which you may lower.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/recruitment.grabjobs.co\/9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn\/\" \/>\n<meta property=\"og:site_name\" content=\"GrabJobs | No.1 Recruitment Platform | Hire Better, Faster\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-01T07:24:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-20T21:04:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/recruitment.grabjobs.co\/wp-content\/uploads\/2020\/06\/featured-business-people-working-office-corporate-team-concept.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Emmanuel Crouy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Emmanuel Crouy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/recruitment.grabjobs.co\\\/9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/recruitment.grabjobs.co\\\/9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn\\\/\"},\"author\":{\"name\":\"Emmanuel Crouy\",\"@id\":\"https:\\\/\\\/recruitment.grabjobs.co\\\/#\\\/schema\\\/person\\\/afb6f34ebc33e0f40e9fa0a7e61ed7bf\"},\"headline\":\"9 Ways SMEs Can Manage Staff Cost During the COVID-19 Downturn\",\"datePublished\":\"2020-06-01T07:24:36+00:00\",\"dateModified\":\"2022-02-20T21:04:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/recruitment.grabjobs.co\\\/9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn\\\/\"},\"wordCount\":775,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/recruitment.grabjobs.co\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/recruitment.grabjobs.co\\\/9-ways-smes-can-manage-staff-cost-during-the-covid-19-downturn\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/recruitment.grabjobs.co\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/featured-business-people-working-office-corporate-team-concept.jpg\",\"articleSection\":[\"Articles\",\"Recruitment Trends\",\"Technology &amp; 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CEO of GrabJobs. Background in Technology and Recruitment. Engineer at heart. Passionate about solving problems with technology. Obstacle racing enthusiast. 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