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Cut Salaries, Not People

Posted by Not John Chow | March 4, 2009 .

Yep, I lost my job.  So did many others at my company. Before Friday the 13th arrived, my company (Company “B”) asked all of our employees to come up with cost savings ideas. There were many good ideas. One idea rose to the top of the list. I referred to it as “Cut Salaries, Not Jobs.”  Needless to say, Company B did not take this path.

A friend of mine at Company “D” told me that they were also scheduled to have an all employees meeting. Everyone feared the worst. When the day came the announcement was a great relief. Everyone in the company from the top to the bottom would be taking a 10% pay cut.

Both companies will save the same amount of money. The difference is that Company B no has less people to do the work. They also have a depressed workforce dealing with survivors guilt and a continued fear of future lay offs.

Company D has a work force that is relieved. They feel that they are all in this together and then have an increased loyalty to their employer.

company b d

Which company would you want to work for?

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Posted under Business, Z | 11 Comments Like this article? Subscribe to our RSS feed

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11 Comments so far
  1. AVTO June 28, 2010 1:17 pm

    Author, thank you very much for what always keep up to date!!!

  2. Haja Peer Mohamed H February 21, 2010 9:31 am

    But you have a good work with your web! keep going man!
    Haja Peer Mohamed H´s last blog ..Change The Way You Think | Moral Story My ComLuv Profile

  3. ez rental cars August 28, 2009 6:01 am

    Company D has the right idea. Paycuts for everyone across the board can save a company. Employees who agree to this demonstrate your loyalty and committment to the company and will likely save their job.

  4. KentJ July 3, 2009 10:44 pm

    This blog is a very helpful resource during these times of high unemployment. Lots of great information. Field inspections is a growing job market. Good work on this site you guys!

  5. Restaurant POS Systems June 5, 2009 6:54 am

    I agree with you cut salary not job or people. It’s really good decision cut pay because many people lost their jobs.

  6. Ruchira Sahan June 2, 2009 6:21 am

    Cutting jobs is not very popular fact in these days on sri lanka!

    Ruchira Sahan’s last blog post..Microsoft forgot to check their massage

  7. Daniel L June 1, 2009 3:20 am

    Alright if noone else wants to say it I guess I will. When you cut jobs you motivate all the employees around the the employee that got cut to think why not me well I guess I gatta work even harder inorder to make sure its not me next time around. However, you also get the effect of lost of people that start opening their eyes to not working in your company and start finding other job offers. For instance, my father works for IBM and though he hasn’t been fired like many others has lined himself up with another job to fall back on and if a better or equivalent but stable job opens up he will quit his current job in a heart beat because he won’t have to worry about being laid off. Some people have better jobs lined up so they start working like shit so they get laid off so they get the package and a new job all at the same time. I believe as a company you must balance the two aswell as cutting operation costs.

  8. chuckiesd May 13, 2009 12:42 am

    For me it better cut the salaries. It more better than termination of the employee. Remember it not easy to find the JOB on the current situation now.

  9. Aftercancer March 31, 2009 10:45 pm

    I’m with you about keeping the employees and cutting the salary. I’d even prefer furlough (which has been bandied about in my industry) because at least if I had less income I would also have more time. Good luck in your search.

    Aftercancer’s last blog post..To meat or not to meat

  10. Kai Lo March 22, 2009 1:41 am

    I would prefer to take the paycut and save the company if I really love my job. If the CEO of the company walks up to all the employees and tell them that he will reduce his OWN pay by 50% to save the company, that is a bold statement that makes me want to stay forever.

    Kai Lo’s last blog post..Is It Wrong to Blog For Money?

  11. Altis Lo (Beaulife) March 15, 2009 3:39 am

    Of course, I will support pay cut, not people cut. At least I still can survive with less pay, and company still keeps good staff to excel the business when the economy recovers. People cut will be sending good staff to other companies.