Layoffs can be inevitable. Here are three ways layoffs can hurt your company and three solutions to help eliminate them.

What effects do layoffs have on your company?


Consider the time and costs associated with hiring and laying off employees.  Recruiting efforts, interviews, internal meetings, on-boarding, training.  Off-boarding, internal meetings, re-distributing work.  Add a 20% reduction in employee performance due to employee job insecurity and you might want to reconsider.

Employee Retention

In general, when companies layoff their people, they are subject to losing trust and productivity in their employees.  If your employees think more layoffs are coming, why should they stay?  In this study, the researchers found that laying off 1% of our workforce can lead to a 31% increase in voluntary turnover the following year.

Brand Reputation

What happens when you are ready to ramp-up again?  Your ability to recruit new or former employees will be limited.  Would you like to hire on with a company that incorporates layoffs as part of their strategy to maximize productivity?   We didn’t think so.

Consider Your Options


Think about what motivates your customers to place an order.  Forward thinking companies understand that demand volatility costs money.   Customers who provide ample notice for their specific needs can be rewarded.  For example, if you know Q4 is your busy season, get those orders in by Q2 so you can stay ahead of it. Incentivize your customers to help mitigate future volatility!

Cut Elsewhere

There really is no such thing as free lunch.  Consider ways to reduce overhead costs without leaving your employees in the dark.  If you find yourself sponsoring employee lunches, try and cut back.  Do your employees travel for work often?  Maybe it’s time to reduce the frequency, or monitor spending with a closer eye.  Have you considered reducing hours on a rotating schedule?  Remember, you are a team and your employees want to be part of that team too.

Partner with PMG

PMG has helped manufacturing companies eliminate their need to lay off employees for 20+ years.  By partnering with us, you have a built-in risk management tool.  As a result, be mindful when considering hiring full-time employees.  When the work picks up, bring in one or more of our skilled technicians, from our diverse roster, for whatever duration you need.  We are flexible, our technicians are highly skilled and we want to make sure you meet your customers’ demands on time without over-hiring.

Connect with PMG!

Tess Dailey, Client Solutions Manager

Kelly Grohowski, Client Solutions Manager