Consdering Employment Cost Reduction Strategies Before Layoffs

In light of the uncertainty with respect to recent changes to federal funding initiatives and their potential impact, nonprofit organizations are facing difficult questions regarding the continued viability of their operations in this current climate due to budgeting and/or funding considerations.

While layoffs are a common and sometimes inevitable approach taken to realize cost savings, organizations should be mindful of other viable options to achieve this goal while minimizing the impact on its employees and the attendant legal exposure of employment terminations.

Below are options that employers may wish to consider to reduce personnel expenses, from least to most drastic.  Each option has its own advantages and disadvantages. Some options can be employed concurrently or in succession, depending on the actual or expected effectiveness.