Shorts Travel solves budget shortfall with loan from employees - KWWL - Eastern Iowa Breaking News, Weather, Closings

Shorts Travel solves budget shortfall with loan from employees

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WATERLOO (KWWL) – Short's Travel Management in Waterloo was hit hard by the economic downturn. Business travel was severely reduced sending the airlines and travel trade into an economic tailspin.

David LeCompte, CEO of Short's Travel Management, a national travel firm said, "The downturn in business left Short's with few options. We needed to remain fully operational to serve our client travel needs while juggling a shrinking revenue stream. We reassigned, reduced and right sized. Unfortunately, we had to do more to stay in the game."

Short's is among the top 20 largest travel firms in the country. However, it may have adopted the most innovative coping solution yet in order to remain viable.

LeCompte said, "We had to maintain adequate staff to serve the day to day demands. But our cash flow was short. So, I had my staff take an immediate 25% pay cut for just 2 months. Each of them still had to work their regular hours for the eight week run and sacrifice one week's paycheck for each of the 2 months. My hope was to repay them by years end if it worked, with interest."

It worked. Short's will be issuing employee "loan repayments" with interest before Christmas, 2009 as well as a gift of a Nook (the latest ebook).

Short's found the solution to this rough economy and has emerged better as a result. David LeCompte concluded, "Sometimes the most logical and simplest solution is right under our nose. I was encouraged by many people, including our customers, to share this story of how asking the employees to share the burden can spell the difference between success and failure. I am indeed a lucky man."

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