Anyone do layoffs in the slow season?

[PrimaDonna]

We've had some unique situations over the past few years (since we started having employees) that they ended up not with us through the slow season. This year we are finding ourselves with our "keep them busy at the shop" and "to do" lists quickly taken care of. Out main guy is salaried. So, no we are faced with little income coming in over the winter months.

Another cleaner asked me why we weren't doing a seasonal lay off. Seeing as this is new to us, I hadn't even considered it. Now I'm wondering if we shouldn't explore it since we don't have the work to sustain the salary and let him collect unemployment till we pick up in the Spring? Also, heard it's possible for him to work on a very limited basis (one day per week?) and still collect but then we are closing the gap with the one day so he doesn't loose any money.

We don't want to loose him, but it will be a struggle to pay the salary through the slow period. If we can lay him off and bring him back in March/April it could work out for all of us.

Thoughts....experiences with this sort of thing?

Thanks.

Meg

 

[Ivan Turner]

Hi Meg,

I don't want to sound like Mr. Toburen, but I do feel for your pain, really I do. I don't know of many carpet cleaning owners that haven't faced the same dilemma that you are speaking about. It sort of comes with the territory unless you do a great deal of commercial work, or perhaps play in the WDR arena. In my past business we were lucky in that our employees were assigned maintenance at our property rental company, or were assigned WDR work. I don't ever recall having to lay off an employee during the winter months, but truthfully I had always feared having to do so. You and John ought to consider making a splash in the WDR field, assuming that you don't already offer that.

At any rate, good luck Meg and stay positive and work will come in to keep your guys busy as it always has!!

Ivan

 

[Mark Saiger]

I have kept my guys on in the past, mainly because they were dating our daughters....LOL

But, this past winter (2012-2013), we also had a terrible March, April & May that would usually be the beginning of some good work for us.

I ended up paying the son in law and youngest daughters Boyfriend to "do shop work" and the youngest didn't like it....

This is the time we really detail vehicles, tear into things and really clean the shop!

Well, in the end, I paid for him to be around all winter and the slow Spring doing not much to make us money, and then when we needed him.....he quit! (youngest daughter boyfriend that is)

So, we did not replace him this year, and I had to work harder to make up for the "slack" so to speak and the "Income I paid him" to do very little.

Hindsight, not sure if I would have laid him off or not, because I am also guarding my rates on our unemployment which are very low.

I really would have had to run those numbers and see if in the end, it could have cost me money there too, or would I just ended up paying that rate quicker....

If you get a feeling, one of them is going to quit early, especially when you might need them, maybe consider reducing their hours, or offering them time off early and saving yourself some of the potential unemployment hassles. Reducing their hours might encourage them to find another job (again if you get the sense they might leave anyway) and save you some unemployment hassles....

Now the reduction in hours might also depend if you have a certain contract of agreement of hours and responsibility.

And each state could be different, so you might need to talk with someone locally too about this.

Oh, and the youngest daughters boyfriend got laid off from his new job in Early October, then I got a notice that I was going to have to pay for most of his unemployment....

BUT, we had him sign a letter that he left willingly to take another job, and listed the name of the new company so that new company had to take on the responsibility of unemployment.

It is not an easy thing, but if they are not going to do the shop work you have listed or do the work up to par, make sure you are documenting it, discussing it with them, having an improvement plan with them....documenting....and cover your tail! (even if it is friends or potential family)

Now, this all sounds a bit cold and you need to know, we really try hard to treat our people good, but you need to sometimes take a step back and really reflect as to what your future goals are, and can these people still continue to make you money, help your business, and help you.

I know that was more than just my .02 cents worth, but just some personal experience.....

(and if you need to document in the shop or monitor.... www.dropcam.com) We have them at our place and everyone knows they are on camera.....

 

[PrimaDonna]

yeah...all our past guys left us, willingly, for other jobs. I never could, and still don't, understand how we end up paying (or are "charged") for their unemployment when they CHOSE to leave us, then got laid off from the next company. It doesn't make sense to me.

I am not up to speed on our rate and how all that is affected. I know we've paid ton in to it over the years....so if that is what it is there for, why don't we use it. This is what I'm trying to figure out.

We have 2 trucks and do a lot of on going maintenance thru the year. One week of no or few jobs and we are out of "shop" work to do (clean, strip down trucks, winterize one of the trucks, update paperwork, review files, clean/paint tools etc). If they aren't the type to go out and prospect/cold call for us, then there isn't much to do. If I'm paying salary, I want 40 hours from him....and with an average of 3-5 jobs a week in the slow period...there isn't much left and I don't want to be paying to twiddle thumbs.

We also don't want to loose this guy. We ran the idea by him today and he is on board as he has some other opportunities he can pursue to fill the gap till things pick up. I just wasn't sure how it all worked and wanted some other opinions.

 

[Shane Deubell]

If your account is clean, sure why not?
Shouldnt change your rate for just a couple months.

Its a state issue so check to see if they have any programs like you mentioned.

 

[Ralph Pastorelli]

With the weather in the Northeast being very warm were not getting the WDR work we usually get, so unless it gets cold fast and work comes in I will have to consider laying off!

 

[Steve Lawrence]

Hey Meg,
Thanks for your story. Very much like ours. We hemorrhage money for a few months in winter even though we do our best to keep our guys busy--2 truck operation. We've never laid them off but some weeks are kinda slow. Our best strategy has just been to save enough from the good season to carry us through. Yes, we do lots of clean up and general maintenance, etc. I'm not sure what the best solution is. We have a couple periods during our good season when we are 3 weeks behind and turning away jobs because we can't meet deadlines. Such a fickle clientele, LOL. Good luck to you whatever you do.

 

[Desk Jockey]

Several years back we signed up for a program through our state that allow the techs to work 20- hours for us and get paid the balance through the state.

We fortunately never had to use it but it was set up as a backup plan just in case. I'd check with your labor department and see if your state offers the same program.

 

[PrimaDonna]

H. Our best strategy has just been to save enough from the good season to carry us through. .

And we have structured it that way... Winter's are always tight. And after last winter I'm really concerned. It killed us since it was extra slow and we ended up with unexpected additional personal expenses, so we blew through the saved up money and then some. We still haven't fully caught up from it. I figured if I could find a way to ease that up for us a bit and have one less 'stress' looming over us, then maybe we should take advantage of it. Laying off during the slow season would help us out. But I realize it's not all about "us" and we do have to consider the employee and the risks of loosing him. But, since he is on board with this plan, we will give it a shot.

 

[Mikey P]

Great but rough subject that thankfully, I have no experience with..

Yet.

 

[PrimaDonna]

Great but rough subject

I want extra points for starting this thread.....

 

[Desk Jockey]

You could always try something like these in your Facebook timeline and then boost it. I planned to use them but thankfully we were busy and I never used them.

The plan was run one in November and the others in December. I was willing to take a hit just to keep the guys busy.


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[TomKing]

Here in the state of Indiana if you do lay offs or the hours drop below $380 weekly pay the employee can collect unemployment for the balance or the $380 maximum. Indiana does not do payouts based on income as some states do.

If I have to pay it make no sense to pay and not get the labor. I work hard to keep us busy. My son tells me "Dad don't sweat it we have always been ok". I worry because a man needs a pay check and training new people is costly.

We work hard at some special marketing to help through the winter.

Did you say you pay unemployment after they leave and have worked for another employer?
How can that be? I get right after you. Do you not have them sign a letter of resignation?
We keep them in a file ready to go.

I would be happy to help in a one on one conversation. This type of stuff should not be discussed on a public bulletin board. I can tell some stories when we are in FL this April.

 

[Mark Saiger]

I was so hoping you would chime in on this Tom King

Always know you are on the top of the game in this kind of info needed

Thanks!

 

[Shane Deubell]

Its a state by state issue though.

Mine right now is 4.1% of payroll
This year the amount used was only $355

So our rate will definitely go down next year, we put in waaaayyy more then we took out.
Too bad i cant get a refund

 

[Lee Stockwell]

3.3%
I've only laid off one guy, felt too sorry to fire him. I had a lot in the reserve fund so it didn't raise my rate. That money is "sunk" anyway.

 

[Desk Jockey]

Another thing you could do is have your husband hit the commercial marketing trail and have your tech doing the cleaning.

Make up a simple flyer informing them of a "Winter Keep The Crews Busy" special offer. It could allow them to get some work done yet be able to spread the payment out in 3-parts.Collect for 1/3 and bill another third in 30-days and the balance in 60-days. I think I'd have a minimum of $300.00-$500.00 to make it work.

 

[Willy P]

Time for a fresh idea here- Build a postcard that gives a percentage to a local charity. - IE - 20% of all jobs booked and completed by February will be donated to local animal shelter, red cross, food bank, etc. You'll get cash flow, no layoffs and you can feel good doing it.