How to Retain Employees During the Coronavirus Pandemic
Business owners, managers, and HR staff know that high-performing employees are an essential part of any organization’s success. It’s not just the high replacement costs of quitting employees — which HR Dive estimates can cost as much as $15,000 per worker. Your highest performing employees find and develop efficiencies on-the-ground that help make each quarter more profitable. They develop strong ties with your customers that keep those customers coming back to your business time and time again, and they help lead their co-workers to higher levels of productivity and success.
The coronavirus pandemic has hit many businesses — large and small — hard. Many companies, struggling with declining or unstable revenue, have had to reduce hours or wages, as well as furlough staff. You may have had to furlough staff to keep your business going, and no matter how many you’ve let go, you hate to lay off any member of your team, especially in this climate.
From a business perspective, you know that layoffs hurt organizational morale, which can drag down productivity in the short term. In the long term, your remaining employees may be more carefully scrutinizing your overall financial health to understand better what their job prospects are. They may start looking for positions themselves, and when a new job opens up, they may bolt for the promise of greater job security (and other benefits).
Perhaps you haven’t had to lay off staff, but your employees know that times are tough. Gone are the amenities that helped make work worth it to them. Maybe you stopped approving expenses or eliminated staff parties. Or maybe you even opted into a higher premium health insurance plan and froze employer contributions to 401k plans. These kinds of moves, too, can impel employees to start looking for other positions.
Perhaps you’re looking at the unemployment numbers and thinking your employees would be foolish to try to apply for another position now. But while widespread layoffs are hitting virtually every sector, job losses have been highest in hospitality, durable goods manufacturing (big-ticket items like dryers), and retail. The number of job openings isn’t great, even if you don’t work in those industries. However, some companies are still hiring. In fact, some employees might be applying already!
Layoffs, budget cuts, lagging sales — all these things stress not only you but your employees out too. And your employees — like the rest of the world — are stressed to a breaking point. Many of them have been juggling new-found childcare responsibilities with work assignments. They may have been exposed to the virus and had to quarantine. They may have lost a loved one during this time and, with the health restrictions in place, may not been able to attend their home-going service. And at the forefront of their mind may be whether they will have a job tomorrow. Highly stressed employees can become less engaged, less productive, and less likely to stay with you for the long-term.
You want to support your workers, but you’ve got to conserve cash flow. Your suppliers are hiking their prices, and demand for your services shifts with each shutdown order or layoff notice from a local business. You’re experimenting with new products, marketing methods, and distribution systems, and while some show promise, others are failing — and costing you money. And if some or all of your operations remain in physical locations, you’re struggling with new costs of regular deep cleaning, plexiglass barrier installation, and mask and hand sanitizer provision, among other safety-related items. HR should be a priority, but most days, with everything you’ve got on your plate, it just isn’t
At Moby Capital, we can help you secure financing that will help you optimize your operations while preserving your business’ most vital asset — its employees. With lending options, such as business lines of credit, invoice factoring, merchant cash advances, SBA loans, and term loans, we can help you obtain the cash you need to boost your sales enough to stabilize your finances. If demand is no longer your problem, we can help you secure affordable financing to increase sales, as well as production capacity, by:
- Bringing back workers from a temporary layoff
- Restoring salary cuts and reestablishing benefits to pre-pandemic levels
- Avoiding new salary cuts and work-hour reductions
- Hiring new temporary workers, or even new full-time employees in critical roles
- Providing your workforce with a heightened sense of job security
With financing options that can provide you with cash in hand in as little as one business day, Moby Capital can put you back on the road to business success. Contact us today to explore your options.