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Layoffs Most Expensive Way for Businesses to Save Money

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Flexible Resources, Inc., pioneers in creating flexible work arrangements at
the professional level, says firing fulltime employees is not the answer.
Building a stable workforce with long-term flexible professionals creates
the most productive, motivated, committed workforce best equipped for
today's 24/7 global workplace.

Flexible Resources advising 3-step plan to cut hours first, jobs last

STAMFORD, CT, March 26, 2009 -- In his inaugural address, President Obama
remarked on the "selflessness of workers who would rather cut their hours
than see a friend lose their job which sees us through our darkest hours."
This isn't mere altruism. It's good business.

Flexible Resources, Inc., a staffing and consulting firm that helps
companies create flexible work arrangements for professionals, says layoffs
are the worst way to save.

"Severance and outplacement costs are just the beginning," says Flexible
Resources, Inc. co-founder and Principal Nadine Mockler. "There's the ripple
effect, destroying the morale of those employees still on the job, the
downward spiral as those who have lost their jobs stop buying clothes, cars,
appliances, traveling and dining out, and the long-term costs to companies
as they will have to pay for recruiting, rehiring, and retaining when the
economy turns around."

The alternative?

  1. Ask for volunteers to cut their hours and work part-time. Flexible Resources says that in their 20 years of experience, they see more than 50% of any workforce - mostly working moms - will happily agree to work a less-than-fulltime flexible schedule.
  2. Then reduce payroll further if necessary with mandatory pay cuts throughout all departments. An across-the-board cut of, say 10%, keeps everyone on the job and retains the sense of fairness; the cut can be reversed when business rebounds.
  3. Lay off only as a last resort.

  "Even in these tough economic times, we have candidates coming to us who
have full-time jobs and are looking for a part-time flexible position," says
Mockler. "Companies can save substantially by reducing hours. It makes a lot
more sense to reduce the hours of your entire workforce than to simply
terminate half your work force. It's not merely the outplacement and
severance costs. The company's health care costs often rise when the numbers
of employees decrease, and 401(K) investments are thrown out of whack."

  "In our 20 years in business we have been through two severe downturns and
the pattern never changes - the knee-jerk reaction to slash jobs only makes
the situation worse, and leads to higher costs to businesses long-term.
We're helping our clients think outside the box to save both jobs and money.
It's the healthier solution."

CONTACT: Redbird Communications; 203-968-0786;