TalkNinja
TalkNinja
Student

why don't companies do pay cuts instead of lay offs?

Just a random thought.. please shed some light!!

9mo ago
MightyLazyGeekStar
MightyLazyGeekStar

Why would a demoralised employee work? Better to have none than have some.

Gems_Bond
Gems_Bond

💯

NinjaNinja
NinjaNinja

You can upset 10 employees by letting them go or upset 100 by pay cuts.

Gems_Bond
Gems_Bond

💯

TalkNinja
TalkNinja
Student9mo

in general well experienced candidates get fired !!

Qwerty2398
Qwerty2398

because pay cuts are a big demotivator. People will crib and complain and reduce productivity. There wont be any gratitude. instead , fire a few, the rest will work harder trying to get into the good books of the manager. You can then reduce pay, they wlll work even harder.

boredcoder
boredcoder

People will stop giving output, also when people are fired support staff is also reduced like line HR, office boys IT department .

In my prev org, they tried this with varying salary cuts ranging from 10% to 50%, one by one people left including star performers

AGentleGiant
AGentleGiant

Also, office rent, electricity, telephone, staff welfare these costs will also go down from the company’s perspective

FunnyBones
FunnyBones

Pay cut for really under-performers is ok but if they do for all then it will be bad

TalkNinja
TalkNinja
Student9mo

yeah only under performers... doing others as well they know the impact of it.

Discover more
Curated from across