You are a responsible employer and have been for many years. You offer a competitive wage and a pleasant working environment. Your employees will work hard for you in return.
Your company is in financial trouble, and it’s not your fault. Despite adapting, making cuts, and streamlining your company’s operations over the past year, it is still not enough to get out of the red. You want to protect your employees from stress. There is also a large portion of you that believes you should be completely transparent regarding your financial problems. Which decision is best?
Fair Warning Gives Employees the Chance to Take Action
Communication is key to your business’ success. If you are having difficulties communicating, this does not have to stop. Your workers owe you the obligation to keep them informed. You have hired people with a lot of skills. You can find a solution with your team.
Even if that is not the case, it gives your workers an opportunity to plan. They might be able to find a second job if the hours are cut. You can let them know if you are going to have to give up your position.
Your Loyalty in Return Fosters Loyalty
Respect is shown by letting your employees know what is happening. This shows your employees that you value them and that they trust you fully. Loyal employees may be open to taking a pay cut until your company is able to recover its financial health as a whole. Long-term employees might be open to investing in the company and offering an innovative solution.
You value your employees as business owners. This feeling is mutual. If you are experiencing financial difficulties, there are many options. Make sure you explore all of them.
This post was written by Trey Wright, one of the best bankruptcy lawyers in Jacksonville FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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