Businesses use work flexibility to stave off job cuts

Small businesses feeling the pinch of the recession are searching for ways to cut costs, but the majority of businesses are making concerted efforts to preserve their staff by using alternatives to layoffs such as increasing work flexibility programs.

A new study by the Families and Work Institute found that, for the 77 percent of businesses who have been forced to cut costs, the most popular strategy is not layoffs but decreasing salaries or eliminating bonuses - the option chosen by 69 percent of businesses surveyed.

Furthermore, 94 percent of businesses are guarding their working capital through the maintenance or increase of work flexibility programs, which allow workers to have reduced work weeks or to telecommute.

The study reported that approximately one in four business owners have used work flexibility programs specifically to avoid making layoffs.

"Employers are increasingly recognizing the value of work-life balance policies to their bottom lines," said Congresswoman Carolyn B. Maloney, chair of the Joint Economic Committee. "Now we see it's true in good times and in tough times. Offering flexibility to workers is a low-cost way to boost morale, loyalty, and productivity."

Despite having to cut costs, small business owners are staying optimistic about the economy's prospects - a recent survey by the National Small Business Association found that the number of small business owners who anticipate economic growth has increased from last year's survey.