How Small Businesses Can Survive Economic Collapse

How Small Businesses Can Survive Economic CollapseHow Small Businesses Can Survive Economic CollapseHow Small Businesses Can Survive Economic Collapse Rossheim, Senior Contributing WriterIn any economic environment, hiring and employee terminations are two of the most critical responsibilities of small geschftsleben owners. In the recent recession, how to go about hiring employeesand how to firing anemployee can be life-or-death decisions for an entrepreneur. A wrong hire may cost your business more revenue than it can afford to lose an ill-conceived termination may bring on a lawsuit that the business cant survive.Thats why savvy small-business owners are taking more care than ever when they hire or fire even a single worker.The Hiring Beat Goes OnDoes hiring seem like a distant dream or an irrelevant business practice right now?Yet you still need to maintain a minimum workforce to avoid losing customers.While unemployment is high and rising, that doesnt always mean youll avoid comm onhiring mistakes. Its a mistake to assume that a glut of candidates equates to an enhanced pool of qualified candidates, says Ken Dzierzawiec, vice president at HR consulting firm FH Solutions Group.In this buyers labor market, small businesses will be inundated with applicants, says Roberta Matuson, president of Human Resources Solutions. Many small employers will just pick the first applicant that comes along. People dont take the hiring process as seriously as they should until its too late. Screening resumes carefully, probing deeply in interviews and doing background checks are as important now as ever.Jennifer Miller, owner of Printing Promotional Partners, attests to the volume of applications that a job posting can draw. Quality applicants are out there in force for employers willing to carefully screen a large pool, says Miller. The applicants I get now are very good some have four-year degrees.If youre inclined to take a chance on a candidate who could be overqualified, consider making a temp-to-hire offer. Contingent employees make sense, says Matuson. Its a great way to see how someone fits into your company.Plan Carefully Before You Begin LayoffsWhat if your finances are such that you must reduce headcount, say for the first time in years, or ever? Be careful how you handle employee terminations, and be humane. The rules of thumb for termination are to be fair, recognize length of service and qualifications, be truthful, and communicate the issues in an upfront manner, rather than let the rumor mill take hold, says Dzierzawiec.Have your layoff plan reviewed by an attorney, says Matuson. At least have a 10-minute conversation about how youre going to do it. Entrepreneurs who dont chart their layoffs carefully often have regrets afterward. Many small-business owners tell me, I had no idea that this layoff might be perceived as discriminatory. If you must terminate an employee, the most important thing is to do it kindly and appropriately, with bro ad advance notice to your workforce, says Alan Genitempo, a partner with Piro Zinna Cifelli Paris Genitempo. That way, when the time comes for layoffs, theres no trauma. Summoning a security escort for a terminated worker can invite a lawsuit, he says. Instead, have someone the employee knows walk them out.Genitempo, who most often represents plaintiffs, has been very busy during the recession. Ive been getting calls from at least four employees a week, he says. A year ago, he typically received one or two calls every two weeks.Looking for more information on how to hire or terminate? See the National Federation of Independent Businesss Small Business Toolbox for HR. Also useful is the SBAs Small Business Development Center. Finally, SCORE, a nonprofit partner with the SBA, provides resources and even free advice from experienced executives, many of whom guided businesses through the deep recessions of the 1970s and 1980s.