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Stepping Up to Company Cutbacks: posted by Elise Jones - 9 April 2009

Considerations for employees facing unpaid time off

We’re hearing a lot about companies turning to flexible alternatives to layoffs as a means of cutting costs in these grim economic times. Some, such as KPMG London, are offering employees the opportunity to take time off without pay. Others implement reduced workweeks, sabbaticals, and furloughs as mandatory measures. For the employee, whether volunteering for one of these options or facing compulsory time away from work, a number of considerations apply.

Changes to workload
Make sure you understand – and do your best to manage to – workload changes accompanying your new schedule. A reduction in schedule should bear a proportional reduction in workload. Otherwise, your adjusted schedule may be more accurately termed a pay cut.

Impact on benefits and contributions
In most cases, a reduced schedule translates to a correspondingly reduced income. Be sure you understand the impact of your new schedule on your wages or salary. Other potential impacts you’ll want to consider include but are not limited to health and dental benefits, retirement savings plan contributions, stock option vesting, accrual of paid time off, and qualification for life insurance and disability benefits. Also keep in mind that eligibility for soft benefits and perks such as reimbursement for mobile phone and high-speed internet service, parking and public transportation, and fitness benefits may be impacted.

Staying in the game with reduced face time 
Chances are your reduced schedule will translate to fewer hours spent in the office with coworkers. Here are a few ideas to help you ensure the reduced face time doesn’t take a toll on your visibility:

  • Communicate the change: Make sure those you work with – team members, other internal partners, and external customers – are aware of your new schedule.
  • Provide contact info and guidelines: Pass on your contact information and share under what circumstances others may contact you during your time away from work.
  • Take advantage of meetings: Make sure your new schedule does not exclude you from team meetings or important customer interactions. Speak up and voice your ideas. Be willing to join meetings virtually if necessary.
  • Tout your accomplishments: While on a reduced schedule, make extra efforts to keep coworkers, partners, and customers up to date on your latest projects and accomplishments.

Managing on a reduced income
Whether you’re looking at a small dip in your monthly income or a more substantial change, you’ll want to determine upfront how you’ll manage. Here are three approaches:

  • Tighten the belt: Consider putting off non-essential purchases, and watch for sales on items you can’t do without. Enlist the help of craigslist, eBay, and your local used goods or consignment store to buy used articles.
  • Get a second job: If you find it impossible to cut expenses to match your new income, it may be time to find a second job. While many employers are cutting back, recent media articles have highlighted companies looking to hire employees in flexible, part-time capacities.
  • Dip into savings: If you’re fortunate enough to have put money away for a rainy day, this may be the time to use it. If the duration of your reduced schedule exceeds your funds or is uncertain, you may want to think harder about cutting back and/or getting a second job.

Getting the most from time off
Unless you’re bound to pour your newfound hours into a second job, here’s your chance to invest in professional development, family and other relationships, community service, or personal interests. But beware – without a plan the extra time can be eaten up by any number of random activities. Decide now what you want to get out of this time away from work and make it happen.

Allow time to adjust
If you’ve never worked anything other than a full-time schedule, it may take several weeks to get used to the idea of taking time off. Don’t fall into the trap of equating time away from work with a lack of commitment. If anything, remind yourself that participating in the company’s flexible downsizing efforts is a major way of showing support for your employer.

Planning an onramp strategy
Be clear with your manager from the beginning about your plans to return to your full-time schedule, and understand your supervisor’s expectations for you. Check back in before returning to your regular schedule, and prepare team members, partners, and customers for your return. Be sure to put back in place any support mechanisms you suspended during your time away.

Time away from work, whether due to a reduced schedule, sabbatical, or furlough, need not be daunting. With some advance planning you can prepare for the changes to come and make the most of the extra hours.

Elise Jones is president and founder of E Jones Consulting, a firm dedicated to building employer-employee synergy through work life integration, workplace flexibility, and workforce diversity. A former Microsoft workplace effectiveness advocate, Elise integrates her professional interests with her own commitment to family, faith, and community.

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