A big mistake that is made by a number of people during economic downturns is to layoff employees starting at the bottom of the chain. While it may surprise you to learn this, only the very large corporations can actually get away with this and even then they only do it to protect senior employees as opposed to doing it because it benefits their bottom line.

The simple fact of the matter as far as small and medium businesses are concerned is that keeping lower rung employees is a lot cheaper than keeping management and since management tends to be hired in larger quantities than necessary anyway, laying off some management employees can serve to save you a large amount of money while at the same time ensuring that your management employees end up working at peak productivity. It is a nice way to kill two birds with one stone and it could save you tens of thousands of dollars each year.

Money like that could easily be the difference between the sky and the grave for a small business and therefore it is something you should definitely consider if the company falls on hard times. Businesses do have a moral imperative to its employees in times of economic downturn however, so make sure that all other options have been exhausted before you act on this option.

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