In these stressed economic times, most of us are losing team members left and right.  Many of us don’t have any input as to who will stay and who will go, but some of us do.  Obviously each team member brings a unique set of strengths and weaknesses to the group, and if the team is structured as it should be all members complement each other so any loss to the team has a huge impact to the quality of the deliverables, and to the ability to get things done on time.  So for those of us with a little bit of input into the structure of the team even though costs must be reduced, there are a few options other than cutting one entire body.  Of course whether any of these things can be “sold” to Management depends on not just the Project Manager’s stature and respect in the company, but also the political environment as well.  Especially now with most employees concerned about their jobs, the political climate is volatile and there is a huge amount of posturing going on.  However, even with that there are some excellent options for keeping your team intact:

 

Furlough:

 

Many companies today are cutting costs by reducing payroll through a one day furlough.  This can be per week, biweekly or even monthly depending on the cost reduction needed.  Having members of the team consistently take “long weekends” for reduced payroll offers advantages for everyone.  The team stays intact, and the employee although their pay is being reduced can usually swallow this option as an advantage.  The skills remain so no hole is created, and the team can work through the time constraints with the Project Manager being able to alter the schedule if required.

 

Percentage Cut

 

Another option is to cut the team’s payroll across the board to meet the cost reduction required.  Many companies are being forced to cut everyone’s pay so that the company can continue to function.  This option is a bit harder to sell to the group, but plausible if communicated correctly.  Each member should be met with individually, so that their questions can be answered one on one.  This option would be the best choice available if the Project has extremely tight deadlines and any time lost on productivity would threaten deliverables – especially if there is revenue attached to the output of the Project.

 

Benefits

 

I know of many companies that are reducing some costs by reducing benefits paid to Project team member.  A reduction or elimination of costs for things like mileage and per diems for travel can add up to huge numbers depending on the type and length of the Project.  Another option is to alter the amount of Company cost associated with benefits like health care and dental coverage.  Many companies have blanket policies for all employees but in smaller companies this is an opportunity to reduce the burn rate, and keep the company in tact until the economy recovers.

 

Right now most employees of any company have to be concerned about how the economy will affect them directly, and faced with the total loss of income the above options should be easier to sell to individuals, all while keeping the company and the team, functioning as a whole.  I have read that estimation for economic recovery has been predicted for as late as 2015, so being proactive rather than reactive should help to ride out this crisis.  Cost cutting is never fun, but if it is done right it can serve the company and the team, as well as ensuring that the Project quality and deliverables are not threatened.  For those facing the challenge of reducing costs, there are many other new and ingenious ways that can be implemented to cut spending, without assuming that someone will have to be put out on the street and that the team will somehow have to manage the additional workload with one less person.  If you are in this situation, do some research and take your options to Management.  After all, part of our jobs is not just to manage the team, but to protect their ability to get the work done as well.