Prevent redundancies in startup:
Redundancies are horrible! Being in the startup world, I can appreciate how hard it is to get great talent. It is worse when you’d have to let go of employees due to unforeseen circumstances. It is very worrying to see the overall trends and the speed at which redundancies are being made to cut costs.
In this situation, I am talking about how we can prevent redundancies in startup during crisis. In a previous discussion, we talked about the long term impacts of redundancies, particularly in a startup. If not for the ethical reason, from a business perspective – it sets back the momentum and pace of progress.
After having gone through all the numbers, it is still crucial to answer the question – What is the long term impact of redundancies to my startup?
On that note, here are a few simple tips to be retain employees in a startup.
Reduced Working Hours
No one likes a pay-cut! However, it is still better than redundancies. As a startup, can we work together with the team and put together a plan to save jobs?
I know it is not easy, people have to make sacrifices. Times are tough, it is either this or people stand to lose jobs? Can we work out a mechanism to put collective needs above individuals?
And this needs to start from the top, the managers and senior leaders will have to lead by example. Propose a plan which highlights amount of work left/project for the next 1-2 years. Following this, it needs to have the people/time needed for such critical jobs.
With this, there might be teams working for 70% of the time and some others for 65%. I am not sure of the magic number, but the startup needs to make an effort to find a collective solution.
Work Breaks
It is an extraordinary situation. But there might be people who are actually looking for a break/sabbatical. Is this an option which can be floated in the company?
If so, can you make an active request for such sabbaticals to protect jobs? I know a startup is not a social organisation, but it does have a responsibility for key resources.
Can these work breaks contribute for other people to work in the company. If as a startup, you are still serious about preventing redundancies in the company, it certainly is an option.
Contract work with Clients
There might be some opportunities in the network to be able to send employees on a secondment. I agree it is not a normal situation, but neither impossible.
As a startup trying to prevent jobs, we do have a responsibility towards the employees. Moving slightly above the hire and fire culture, a startup can go beyond the short term measures to prove how far they are willing to go.
And if a startup can show this to the employees, I am sure it is reciprocated with respect.
Temporary Layoffs
These can probably reflect the voluntary redundancy schemes in larger companies. Sure, startups cannot afford to offer payouts for experienced people. But, they can at-least provide a temporary break.
Most times when people leave, if their employment is tied to shares, they stand to lose them. However, if the startup can assure that these shares are safe through the temporary period, it can still be a good show of confidence to prevent redundancies. This gives opportunity for someone to find a different job in the meantime and return when times are better.
I can appreciate that a startup doesn’t have all the resources of a large business. But, if the company and founders can be willing to stretch a little for their key people, it can bring about some very innovative solutions to prevent redundancies. None of the solutions above are perfect, but they are a start towards collaborative working.
