Company’s financial difficulties and their prevention

Your company cannot achieve its goals if the personnel do not know what is happening and what is expected of them. This is particularly true in difficult times.

When you openly inform your employees about financial difficulties, they can help you cope with them. Openness prevents rumours and the spread of false information outside the company.

In terms of performance and well-being, it is important that the work has been organised and responsibilities allocated appropriately. The assessment should be carried out together with the personnel.

When considering solutions for improving the company's financial situation, also take into account the number of personnel and tasks and whether there is room for improvement in the operating methods. At the same time, it is worth examining the division of labour from the perspective of your own coping. For example, could you give some of your own work to your employees to leave you more time to manage the company's finances?

The result of financial difficulties may be that you need to rethink the organisation of work and tasks. 

Companies covered by the Act on Co-operation within Undertakings must negotiate in advance any changes affecting employees. Even though your company makes the final decisions on its own, arrange the co-operation negotiations so early that your employees can actually negotiate on the matter. If the cooperation negotiations may lead to lay-offs or terminations, inform the TE Office of the negotiations at the latest when they begin. If at least ten employees are terminated, notify the TE Office of this without delay.

The TE Office provides advice in situations related to personnel changes, even if your company is not covered by the Act on Co-operation within Undertakings.

More information on co-operation negotiations and lay-offs