How far are you willing to go to keep your staff employed? This option may test your limits, and it includes hiring out your excess workforce to other companies and possibly even your competitors.

This may seem like a radical approach, but in difficult times it’s essential to consider all options, unconventional as they may be.  This is an employee-centric move and requires a fair bit of work on behalf of the employer, but it can pay dividends over time if successful.

It demonstrates out-of-the-box thinking and even presents the opportunity for positive public relations and media coverage in challenging times. 

It may not be an option if everyone in your industry is experiencing the same financial downturn from circumstances outside of your control and not based purely on a company performance issue.  

If that is the case, creative thinking to determine which industry is doing well at that time and could use the same talent. Charities and nonprofits are a surprising option in times of crisis, for example. Other examples may include tangental industries or even groups farther down in your supply chain. It’s an important consideration if you don’t want to lose those employees while you can’t continue paying their salary.

The reason this works for the “sharer” company is that they may not be able to hire someone with that skillset full-time, but this temporary leasing of the talent gives them the opportunity to use the skills for brief projects and then they can stay on as a full-time employee of the “sharee” company.

Such an arrangement can help you look out for your employees while maintaining a link to them. That way, when time goes on and situations improve, you may be able to reach back out to rehire them in either a full-time or part-time capacity. People have long memories and will appreciate the work you did to help find them employment when times were challenging. Your conduct during these times will define how your employees, both current and former, will think about your company for years to come. 

Companies that offer this staff swapping service are StaffShare and Industry Sharing (for the gaming industry) in the UK. In the United States, several states have adopted work sharing. In Feb 2012, The Layoff Prevention Act of 2012 was enacted to spur adoption of the state work-sharing programs. Employers work with the state ensuring that they will maintain health and retirement benefits.

 

Courtney Rubin, “To Avoid Layoffs, Companies Lend Away Staff”
INC, January 18, 2010
https://www.inc.com/news/articles/2010/01/lending-staff-versus-layoffs.html

National Employment Law Project, Center for Law and Social Policy
“Work Sharing: An Alternative to Layoffs”
NELP (National Employment Law Project), July 06, 2016
https://www.nelp.org/publication/work-sharing-an-alternative-to-layoffs/

 

This by no means lists everything that needs to be considered. It gives you a great foundation and starts to make your final decision regarding your short- and long-term payroll cost reductions during these challenging times.