Bringing back employees to work

  • Many blogs that I read want to know when to bring back employees whom are either on furlough or have been discharged. The real answer is when you need them to help you make money-- NOT BEFORE! The world has changed and changed significantly-- although we want to retain and aid all of our employees, now is the time to ensure that you really need an employee before he/she is brought back to work.

    Watching the bottom line, ensuring that profits are there and expected to be there when the employee is brought back to work. Don’t bring someone back just to bring them back-- make sure that you need them and they will help make money for the enterprise.

  • Also, when is the right time to lay off employees? If the food and beverage industry as well as events don’t ramp back up soon, more employees will be furloughed or laid off in the industry that weren’t before…

  • One thing I have tried to do is to make sure my projections for labor meet the 50% and then 75% occupancy revenue stream of what my “past” business used to be. In designing a projection budget, we can quickly adjust if the numbers aren’t there. Basically, we have 100% of our sales to work with, if labor is 40%, then everything else has to be cut to 60% to break even, it is a balancing act right now but action is critical. Waiting too long to furlough can damage cash flow. I let my managers know we are all wearing two hats or more and my staff, we bring them back as we can and let them know, we are all doing our best to insure that we preserve a business for the future in hopes this is a temporary setback.

Log in to reply