Friday, April 10, 2009

Layoff or Pay Cut?

Interesting discussion on a financial talk show the other day. Apparently a company had just announced an across the board pay cut. This was necessary to avoid layoffs and all employees would be cut by the same percentage. The discussion revolved around the question of which was the better approach: A uniform pay cut for all employees to spread the burden and save jobs. Or, have the layoffs because economic downturns usually call for a reduction in staffing (why pay people to stand around when we don’t have the volume of work to support them?).

What do you think? I'll share my opinion after I've heard from some of you. Participating in our forums is simple. To learn more about forums, and the comment tool we use to gather thoughts, click on the link below. Meanwhile, I'm off to hide some Easter treats for 3 grandsons.

Click here to learn about forums in a post published on 2/13/09

Click here to read "How to Comment on Pelley Blog Posts" published on 2/10/09

About Pelleyblog: We are striving to be a communication device for managers where many people can share their thoughts, ideas, opinions, perspectives and points-of-view. We focus on topics of interest to supervisors, group leaders, foremen, department managers, project managers, team leaders, assistant managers, associate managers, office managers, nurse managers, crew leaders, unit managers, and other first-line managers. But managers at all levels, and people interested in management topics are welcome and are encouraged to join us both as readers and participants.

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2 comments:

DMP said...

I think a forum would be a great asset! It would be similar to those great debates we have in class!

KEK said...

I know it's a tough call either way, but past experience has shown that even with the pay cuts across the board the plant still lay's off or closes the doors. Some people are making just enough as it is in the current job and a pay cut could push them to the point they can't afford to work there anymore as well. So wouldn't doing pay cuts end up with the same results? You are going to lose people regardless. Anyway that is just my oppinion on this factor.

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