Here's a question and answer that was recently published in the Flashpoints newsletter:

Question: I’ve considered automating certain functions of my business, and one of the results is that it will reduce my staffing needs. That will save money and increase productivity, but it also means I’ll have to lay off good people who have been loyal employees. I don’t want to do that to these folks, especially now when it will be hard for them to find other jobs.

Answer:  Sometimes you have to do things that are painful in the short-term to strengthen and grow your business for the long-term. It’s never easy to terminate people, especially when they’ve done nothing wrong. But your priority has to be the overall health of your company, because if you aren’t staying profitable, you can’t stay in business.

Be honest and compassionate about what you’re doing. Don’t try to keep it a secret—you won’t be able to, and you don’t want to give the rumor mill a chance to get going because people will always think things are worse than they truly are. When the time to make the terminations arrives, do it with care and respect, and offer as much support as you can in terms of outplacement counseling and other assistance.

The upside to this type of downsizing is that it gives you a chance to clean house, to get rid of people who are not a good fit for your company or who aren’t performing at the level you need. Of course, it’s a good idea to consult with an employment attorney before you begin the notification process to make sure that you are in compliance with all application laws.

Do you have a question for JK Harris? Send it to info@theflashpoints.com. If we use your question in a future newsletter, you’ll receive a free autographed copy of Flashpoint: Seven Core Strategies for Rapid-Fire Business Growth.