If you cut personnel, as I suggested last week, then your image is already suffering among your employees. This time I’m doing all I can to solidify your Scrooge like reputation (thankfully it’s not Christmas). At least you’re improving the bottom line, right?

Here we go – First idea, eliminate your 401(k) matching program. According to U.S. News & World Report, numerous companies have eliminated these programs. 401(k) contributions were restricted during the last recession and later reinstated when the economy improved. The bottom line is that employer 401(k) matching is not required or permanent. Depending on what kind of contribution you’re making now you could save up to 5% of your payroll. That’s serious money in a family law practice.

Next up – require employee contributions for health coverage. While many firms throughout the country pay 100% of employee health insurance, a large number of firms do not, including large New York firms. It may be a shock at first for your employees to have some funds withheld from their paychecks for insurance coverage, but they’ll, eventually, get used to it (and stop hating you). Paying 100% as an employer isn’t customary in many areas, and it certainly isn’t mandatory.

Bottom line – in our current economy many employees will see these cuts as a preferred alternative to layoffs. They’ll adapt and, hopefully, you’ll have the extra funds necessary to pay holiday bonuses (and avoid being called Scrooge).