Retain and hire individuals based on their skills. Work on rebuilding your integrity with the community. Underpromise and overdeliver.
Clean house and hire sincere caring human beings
Implement a true Human Resource department that can address the inappropriateness and unfairness. I suggest it be outsourced so there can be no internal influences.
Give fair recognition to everyone and do not demonstrate such blatant favoritism towards friends, family who are far less productive.
Give the employees a raise and make sure that there's no NEED to lay them off and then come back in 3 months to more nonsense. I'd be more strategic and fluent about what's going on with my employees so that there are no surprises. The company is ran terribly.
Answered - Care Coordinator (Current Employee) - New York, NY