4. Make Across-the-Board Compensation Cost Cuts before Moving on to Alternative Work Arrangements and Involuntary Separations

4. Make Across-the-Board “Compensation Cost” Cuts before Moving on to Alternative Work Arrangements and Involuntary Separations

The first round of cost cutting should focus on reducing costs without laying off personnel. There are 10 cost-cutting alternatives described in this book that can generate a significant part of the cost reduction goal. In making the cuts be sure to communicate the following to all affected employees:

• Why we are making the cuts.

• How these cuts will save jobs.

• How long we can expect the cuts to stay in place.