Source: Partner’s Report

In today’s tough economy, many CPA firms, like other businesses, are considering layoffs. Although this may be a good opportunity to eliminate underperformers, consider the alternatives before you let go people you’d rather retain. Options include:

• Reducing workweeks (say, from five days to four) or introducing mandatory furloughs or reduced hours.
• Freezing salaries.
• Cutting spending on travel and entertainment.
• Increasing employee contributions to benefit plans.
• Reducing or suspending firm matching contributions to retirement plans.
• Allowing some employees to work at home.

Some of these measures may not be popular, but they can help you retain talented people. Plus, employees generally understand the need for belt tightening.

For the complete article, click here.

From Partner’s Report, The Monthly Update for CPA Firm Owners, Institute of Management and Administration, Inc., subserve@ioma.com, May 2009, p. 2, “Avoiding Layoffs.”

Measuring CPA Leadership Effectiveness