Alternatives to Layoffs

CONSIDERING LAYOFFS?

ALTERNATIVE OPTIONS

Thinking of laying off employees? There are other options to consider and assistance that can be provided to employers to avoid having to layoff employees. 

Reach out to your Colorado "Rapid Response Representatives", who can give additional ideas and resources to remove or reduce the need for layoffs. They also provide services to assist you and your employees if layoffs are unavoidable.

 

Contact your local Colorado Workforce Center for more information.

  Locate a Workforce Center

    WHO IS RAPID RESPONSE?

    Rapid Response offers workforce services, guidance and information related to restructuring and/or downsizing a business. Services include, but are not limited to:

    • Job Placement Assistance,
    • On-site layoff transition workshops,
    • Information on the Worker Adjustment and Retraining Act (WARN),
    • Guidance for employers on establishing an on-site career or out placement center to assist employees with their future employment needs,
    • Services to help reduce employee attrition prior to the defined layoff date.

     

    ASK US ABOUT WORK-SHARE

    THE WORK-SHARE OPTION

    WHAT IS THE WORK-SHARE PROGRAM?

    The Work-Share Program provides an alternative to laying off employees by allowing them to keep working, but with fewer hours. While an employee is working fewer hours, he or she may be eligible to collect part of his or her regular unemployment benefits.
     
    EMPLOYER QUALIFICATION REQUIREMENTS:
    • You must have reduced the normal weekly work hours by at least 10 percent, but by no more than 40 percent.
    • The reduction must affect at least two out of all employees in the business, or a minimum of two employees in a certain unit.
    • You must have paid as much in premiums as we paid your former employees in unemployment insurance benefits. See the rate notice we mailed you in November.
    DOES MY BUSINESS QUALIFY?

    For more details, download the Employer Fact Sheet by clicking below. We also provide a downloadable Fact Sheet for you to hand out to employees to see if they meet eligibility requirements.

      Employer Fact Sheet      Employee Fact Sheet

     

    FREQUENTLY ASKED QUESTIONS

    Ready to try it? We will process your application in 5 to 10 business days of receiving it.

      Apply for Work-Share

       

      OTHER OPTIONS & RESOURCES

      GOVERNMENT DEPARTMENTS & AGENCIES

      The US Department of Labor  (USDOL) provides some suggestions for businesses and employers on ways to minimize job loss and its effects on you and your employees. Below is a list of some of their suggestions, which can be found in more detail on the USDOL website.


      For more suggestion from USDOL, visit their website:

         Visit USDOL For Layoff Solutions

       

      SUGGESTIONS FROM USDOL:
      Department of Commerce:
      Economic Development Administration
      Unemployment Insurance (UI)
      • Review the USDOL Fact Sheet for additional information on "Short-Time Compensation (STC)" also called "Work-Share" (detailed above), which gives the option for employees to work shorter hours instead of being laid off. Also the Colorado Department - UI website may list additional information and suggestions for employers.
            Colorado UI Website                          USDOL Fact Sheet

      or

      Manufacturing Extension Partnerships

      A nationwide network of non-profit centers, who provide small and medium-sized manufacturers with help.
       

          Visit Manufacturing Extension Partnerships Website

      U.S. Department of Agriculture

      Assistance and information for the rural areas.

          Visit the USDA Website

       
      MORE IDEAS:

      There are many articles and information online with great suggestions on how to reduce expenses and find ways of coping with the economic downturn. Here are only a few to consider trying.

      LIST OF ALTERNATIVES TO EMPLOYEE LAYOFFS
      • Furloughs - a mandatory, temporary, and unpaid leave of absence.
        Tips for implementing furlough days: 
        • Consider the number of furlough days to be based on a pay scale or salary range.
          Create salary range groupings and determine the number of furlough days that would
          be required for each salary range group.
           Start with the group of employees that receive 
          the highest salary range and then reduce the number of employee furlough days as you
          go down each salary range group.
          • For example, those in the highest pay range would receive the most furlough days,
            the group of employees in the next pay scale range down would receive a lesser
            amount of mandatory furlough days compared to the highest paid employees, 
            then the next group of employees to fall into the third group in the pay scale range
            down would receive an even lesser amount of furlough days, and so forth. This will
            allow those employees that receive the least amount of pay and are the most vulnerable
            to the decrease in pay, to not be as financially impacted as the staff that receive a higher salary.
      • Structure furlough days to be placed around holidays and times of the year when employees would
        normally want time off.
      • Give options and flexibility to what days staff can select as for their furlough days 
      • Allow staff to request for specific (furlough) days off, within a given time frame
      • Work-Share - employees work fewer hours Offer Early Retirement "Hiring Freeze"
      • Discontinue use of contractors, outsourcing work, and employment of temporary workers
      • Downsize workspace 
        • Reduce space and the cost of leasing a work space by letting employees remotely "Work From Home" 
        • Sublet extra space
      • Ask your employees for ideas 
        • Ask for volunteers - some employees, when they know the situation, may be willing to go from a full-time
          schedule down to a part-time schedule or be willing to take a "sabbatical" (unpaid time-off)
      • Cut out extras & unnecessary perks 
      • Eliminate or reduce marketing & advertising
      • Eliminate Overtime - do not ask or require employees to work extra hours for extra pay
      • Look for government grants, programs, or assistance - if the business was impacted by a
        National Disaster then there may be special funding and services you are eligible for
      • Sell Assets
      • Contact your local Workforce Center for more ideas and suggestions!

       

       

      (NOTE: Some of the suggestions listed above were found through the following sources:
      The Medium, The HartfordThe Harvard Business Review and The Wall Street Journal.)