Sunday, January 25, 2009

Business - Contingency Plans for Horticultural Businesses II - Labor Contingency Planning

In a down economy, horticultural businesses may have to reduce or eliminate labor, reduce employee hours, reduce salaries, or lay off employees. You need to have a contingency plan in place for these situations. The following are some points to consider.
  • Determine what people assets are critical for you to keep? List why they are critical.
  • Determine who could “afford” a salary cut including you and family members in the business.
  • Determine who could undertake more responsibility.
  • Identify who are your definite keepers.
  • Make a plan so that you know if you had to cut 10 percent of your workforce, what your severance policy would be.
  • Plan how you would you treat departing people so as to engender trust, respect, and loyalty of those remaining.
  • Plan how would you implement a people “cut”.

Information from Ed Hess, Professor of Business Administration, Darden School of Business, University of Virginia.

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