Should You Furlough, Reduce Hours, or Initiate Layoffs?

Eric Mochnacz
March 25, 2020

With job loss and business viability on everyone’s minds as a result of COVID-19, Consultant Eric Mochnacz provides some guidance on furloughs, layoffs – and the ensuing unemployment claims that would result.

Employers need to be even-handed while managing unemployment claims. If there is a mass lay off, an employer does not want to find themselves in a situation where their decision on whether to contest one employee’s claim while not contesting others is perceived as discriminatory.

There’s more advice on managing reductions in force in the full article here.

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The Results

Construction and Contracting

A commercial roofing contractor was in hyper growth mode. They had goals to increase their field workforce to expand their service area to additional states and geographical locations. If they were to grow their field workforce, they would also need to increase their administrative, operational and sales headcount to support the additional workload created by increased field work. Additionally, they were challenged in workforce retention and development, experiencing high turnover, and did not have a dedicated Human Resources professional to manage employee relations and compliance issues that come with trying to scale a business.

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