by Anne Saviola

Created on: August 28, 2010   Last Updated: August 30, 2010

Companies are struggling very hard to survive this recession. Management has to freeze emotions and make radical solutions to save companies from shutting down. Generally, decisions are very radical concerning employments and other expenses. Automating operations generally requires huge amounts of capital and depreciation of expenses takes far too long time to give capital to the company. So, instead outsourcing services is very common during depression.

Could there be any other solutions to the radical decisions? Consider a few options and their consequences.

Alternatives to redundancies:
-If the situation is not too catastrophic, the workers could be approached directly about the unfortunate situation.  Reduced working hours and job preservation instead of lay-offs could be offered. Of course it’s
understandable that in many cases lay-offs is the only solution even though it may be a disaster for some.
- Different vacancies can be combined, but in this case, someone will always remain without work. However, it may be mandatory in certain cases. It is easier to terminate or lay off some workers than to abolish the entire vacancy, which, however, would bring in some capital to the company.
If services are outsourced, that causes also layoffs.
-Terminate outsourced services, which can be managed by own staff. That can get savings to the wage fund. Non-entrepreneurs will be left without income, but the company has taken care of its own staff and will eventually win in staff-motivation to work with increased work-related tasks.

Reduce unnecessary expenses:
-Start with the very practical level: paper-prints can be exchanged to saved files on computers, calls may be exchanged either to messenger or Skype-calls and messages, internal calls to visits, less coffee and in common all use of different goods should be reduced.
- Staff could temporarily take care of the cleaning at workplace, instead of outsourcing it too. If this should happen in a big company, we would talk about very huge savings!
-Think of all the activities and goods which consume capital. What can be reduced, what are unnecessary and won´t be needed at all.
-Think: What makes the world go around? Money of course! So don´t travel around the world to get some! Decrease travel expenses! And do not join business with pleasure!

Marketing more efficient:
-Arrange for example a sales competition for the sales-team. Winner could receive a bonus. Do this monthly.
- More effective

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