Staff Related
We have already mentioned some issues to do with staff in connection with the COGS.
Permanent staff are essentially a Fixed Cost because they don’t vary from month to month. There are several ways of reducing the Fixed Costs of your staff.
1. Redundancy:
If you no longer have a need for some of your staff, begin a process for letting them go.
If your business is in financial trouble some regulations, that might otherwise prevent you from letting staff go, may be waived.
Read more on who, what and how to manage redundancy in the article: How to do Redundancy Planning.
2. Outsource some of your permanent staff:
They can:
Work for others in the short term, as a way of off-setting their expenses in your accounts.
Work for you full-time but become permanent part-time for another employer.
This can work for both you and the other employer.
You both get some flexibility and it reduces your costs.
3. Staff annual/unpaid leave:
Unable to use staff at the moment? Ask them to go on annual leave, if it is permitted.
This avoids them using annual leave later when you need them.
By mutual agreement, staff could take unpaid leave which gets them off your books.