But if profits are down—which can happen in Q1 of a new year—cutting full time employee hours may be an option to consider.
Here are five key things to know, from how to tell an employee you are cutting their hours to how to use attendance tracking software to make those adjustments globally.
Having to reduce employees’ hours is never easy. As a manager, you know it will likely disappoint your staff and may hurt morale. However, clearly communicating these changes is crucial to mitigate negative impacts on your team.
Follow this comprehensive guide to gracefully tell an employee you are reducing their hours
Set the Stage Thoughtfully
Plan the discussion carefully to create an environment conducive to receptive communication:
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Schedule a private meeting – Discuss the change one-on-one to avoid embarrassment,
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Allow sufficient time – Don’t rush a sensitive conversation
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Select a neutral location – An office with a closed door prevents interruptions.
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Have any documents ready – Provide new schedules, policies, etc.
Thoughtful planning prevents an ambush-style announcement that could provoke a defensive reaction.
Open with a Personal Touch
Begin the meeting on a positive note. Consider saying:
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“Thank you for meeting with me today. I appreciate your time.”
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“Before we get started, how are you? How have things been going lately?”
A friendly check-in helps the employee feel respected as an individual. It gets dialogue flowing before addressing the difficult topic.
Explain the Situation Simply
Next, explain the situation requiring a reduction in hours clearly and concisely:
- “Due to business conditions, we need to reduce expenses company-wide. As part of this, your hours will be reduced from 40 to 30 per week starting on [date].”
Keeping the message brief prevents overwhelming the employee with excess details right away.
Provide Context Next
After the initial news, expand on context:
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Reasons for the change – For example, industry downturn, loss of a client, high operating costs.
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Scope of impact – If others’ hours are also cut, say so.
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Expected duration – Note if it is indefinite or a defined period of reduced hours.
Factual context helps the employee understand the big picture behind your decision.
Acknowledge Their Feelings
The employee may feel angry, confused, or anxious about having their income and hours cut. Acknowledge potential feelings before moving into specifics:
- “I know this is likely upsetting. Losing hours and pay is difficult. I want you to know I empathize.”
Validating emotions defuses tension and shows you care.
Provide Important Details
Next, explain key details the employee needs to know:
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Revised work schedule – Provide their new hours/days in writing.
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Updated pay rate and salary – In writing, include any changes to pay.
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Impact on benefits – Detail any impacts on accrued vacation, insurance eligibility, etc.
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When changes take effect – Give a specific start date for the new schedule.
Clarifying logistics reduces uncertainty about what happens next.
Listen to Their Response
Expect questions and concerns. After delivering key details, pause to get their honest reaction:
- “I want you to digest this news. Do you have any initial questions or concerns? I’m here to listen.”
Letting them speak first builds understanding and shows you care about their perspective. Address any concerns transparently.
Express Empathy and Support
Reassure the employee that you want to support them during the transition:
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“I understand this is a major change. My door is always open if you have any other questions or need support.”
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“This was a very tough decision, but unfortunately necessary. Please know we value you, and want to help you succeed.”
Sincerity builds trust and inspires their continued discretionary effort.
Confirm Next Steps
Close the conversation by confirming next steps. For example:
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Send a follow-up email summarizing the reduced schedule, pay changes, and effective date.
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Schedule 1:1 check-ins to touch base on their adjustment to the change.
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Invite them to come to you with any concerns.
Proactively planning next steps provides helpful structure during a disruptive transition.
Having to cut an employee’s hours is difficult news to share. But communicating with transparency, empathy, and clarity can gain their understanding. Thoughtfully share the news, provide important details, listen to their perspective, and confirm follow-up plans. With care and compassion, you can guide them through this challenging change successfully.
Frequently Asked Questions
Why might I need to cut an employee’s hours?
Common reasons for reducing employee hours include:
- Company financial difficulties
- Loss of a major client or contract
- Seasonal slowdowns in business
- Need to cut labor costs
- Overstaffing for current workload
What are the risks of cutting employee hours?
Potential risks include:
- Lower employee morale and engagement
- Best employees quitting for more stable jobs
- Remaining staff is overworked
- Customer service suffers from understaffing
- Labor law violations (e.g. overtime rules)
What alternatives exist besides cutting staff hours?
Options to explore first:
- Natural attrition and not refilling roles
- Voluntary sabbaticals or unpaid leaves
- Limiting overtime
- Freeze on hiring/backfilling roles
- Suspending 401k match temporarily
- Reducing expenses elsewhere
How much notice should I provide for hour reductions?
Give as much notice as possible – ideally 4 weeks minimum. This gives the employee time to adjust personal finances.
Should I tell other employees that I’m cutting someone’s hours?
Communicate openly about necessary hour reductions to prevent office rumors and maintain trust. However, never share details about an individual employee’s situation.
What should I do if the employee becomes angry or upset?
Acknowledge their feelings empathetically. Offer to discuss concerns and provide support. If emotions escalate, you can pause the conversation and pick it up later when things have settled.
Know the answer: Can you cut an employee’s hours legally?
Before you make the move to cut hours, know the law in your state. In general, business owners can cut employee hours to whatever point is necessary—as long as no one’s working for less than minimum wage.
- If you cut hours for salaried employees, that alone won’t affect their pay. You can also cut their pay too, but know that if you cut it below a certain level, they become hourly workers, which entitles them to overtime.
- If you have union workers, consult the union contract to ensure you adhere to advance-notice stipulations.
When it comes to telling an employee you are cutting their hours, balance the law with what feels right. In some states, you’re legally required to give warning that you’re cutting full time employee hours. But even if the law in your state doesn’t require it, offering notice as far in advance as you can is a good way to foster trust.
Cut costs elsewhere first
If you’re cutting full time employee hours because your business is experiencing tough financial times, consider cutting costs in other areas before you cut hours. Proving to employees that you’re willing to make tough calls before you dip into their pockets shows that you appreciate the work they do and the loyalty they’ve shown.
