The headcount dilemma. Why the easy solution to a business crisis, layoffs, is not necessarily the best solution. What companies are doing to cut costs and keep their best people. Leadership during a crisis : how to maintain morale and keep your best people -- The headcount solution : how to cut compensation costs. Prepare your organization for what's in store. Plan for three rounds of compensation cost cutting. Decide whom to cut and whom to keep. Implement across-the-board cost cuts. Implement alternative work arrangements. Implement layoffs. Help the survivors cope and get back to business.