Three Tips on Workforce Reductions

"Uncertainty" was the economic watchword for 2025, and it’s likely to stay in circulation in 2026. So association leaders have reason to think about whether a recession or federal policy changes will impact their fortunes.

"Nonprofits are feeling financial strain right now," said Holly Peterson, Esq., counsel at Tenenbaum Law Group, which serves nonprofits. "There have been clients who have contacted me because a grant has dried up, or they’re not pursuing an initiative anymore because of a federal policy change that’s resulting in a program’s discontinuation."

But But association leaders are thinking about reducing headcount in response to those factors, they have a variety of matters to consider. Recently, Peterson wrote an article cautioning leaders not to characterize a firing for cause or job performance as a "reduction in force" or "reorganization." "They think calling it that diminishes risk, but it doesn't," Peterson added.

Please select this link to read the complete article from Associations Now.