Thursday, January 22, 2009

An Alternative to Layoffs - Shared Work

Rick Leibowitz, director of our North Country SBDC, recently shared this with me:

This looks to be something that is worth investigating by some of our clients. It describes a NYS Department of Labor program that encourages employers to consider shifting staff to a four-day work week, with the employee earning qualified unemployment wages for the fifth day. It argues that rather than making wholesale layoffs, a company might be able to cope during a down period by essentially reducing its payroll by 20% for a given period of time. The theory continues that, once business improves, a company isn't faced with the costs of hiring and training additional staff.

Has anyone had any experience with this, or had clients who've given it a try?

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