Is it be better to have wide salary cut rather than lay offs in Corporates?

During Recession "Wide Salary Cut" will be positive approach even mukesh ambani and many more ceo in world made cut in their salary himself. And it is also good for employee than Lay offs during period. Otherwise it is not a unique strategy......

I should think so ... that wide salary cut in a staggered manner is a better option than lay offs, if at all there is need to cut costs !

It saves the ignominy for both the employers and the employees... At least, that is what common sense says !

Lay offs should be considered as the last step after all other means of saving the company. Salary cut is nothing but forcing employee to share the tough times with the company. But lay off is putting an employee into darkness on a fine morning..

I believe it is always better to try to retain your employees (the retainable variety) in any kind of situation, more so in a downturn kind of scenario. With today's workforce more aware of global scenarios and how it affects at local levels, it is imperative that organisations retain good manpower, whether in times of distress or in booming times. Either way, the lettng go of people results in larger costs to organisations including costs that are not evident in the near foreseeable future. The costs attached with rehiring people, once the downturn has evaporated, would be much more than retaining them. Organisations could invest in training, could take employees into confidence and discuss the issue of salary cuts (which wuld be more acceptable to employees than a lay-off). This gives employees a feeling of being taken care of rather than being shunted out. I am in favour of salary cuts across the board to aid the organisation ride out the slowdown.

Right...salary cut is better option rather then lay offs. 

In my opinion, salary cut is better choice then lay off but many compnay prfers reverse. And finally both if it is inevitable.

1.If we go for slary cut, then company will show the faith in employess as well for there system that they have not recruited anyone without reason.

2. In the time of recession, it is difficult to assign the job for  but resources can be utilised by engaging them in some other task if it is manufacturing or engineering companies. Because this is the time when each company should do some introspection. So this time and resources can be used to make strtegy and planning to make things more better and effective for future.

3. This time can be utilised to give employees advance training and at the same time, as quantum of job is not high than remainingg resources can do the day to day work.

4. If you are not going for lay off, company will get more loyalty of employees and get long term benefit. It is a kind of act whcich develop sense of ownership in each employee and ultimately company grow like anything.

If the company has two options: Salary Cut or Lay Off.

Firstly the organisation should discuss the issue with the current employee and let them know that the company is facing financial difficulties due to Global Meltdown and it needs to cut cost/ reduce cost for a certain number of months. Suggestion of them should be taken into consideration.

If they can come to a particular conclusion its fine else, the organisation should think about cutting down the salary to cope up with the situation and if its not able to, then lay off. Lay offs should be the last option.

I support salary cut but that should be valid in all levels and should be slab wise. When time is bad and survival is necessary, then all employees of the company from bottom to top should share the responsibility. Again that cut should be reasonable and should not create a virtual lay off situation.

Salary cut is a better option, lay off wil create more disturbances and panic in a company, this will have a negative effect on the existing employees. But Salary cut should be done in a very proffessional way, giving prior intimation to employees, showing proper reason and this should be effective to all labels of employees in the Org.

In my opinion every organization should have some degree of cushion mechanism before resorting to to salary cut/lay-off. I believe lay-off will be second in the priority because every employee in the organization is valuable for the organization. Even salary cut should not be on top of the list; what should be on top of the list is salary freeze, stop bonus and cut other expenes like travel, pick up-drop, party etc.

The cost-cutting mechanism along with some sizable fund for the rainy day can help an organization survive in the middle of recession. Like everything, recession will come and go. What the recession will teach us the way you can survive and come out as winner. Periodic review of company expenses even in the best days of economy should be top on the list. And I believe the stricter measures should be taken when you are doing best; that includes stringent performance reviews, not overgrow yourself and finally, focus on innovation and perfection.

It really depends... If this is a short term situation that the company has to manage, it can be more effectively done through a Salary Cut than a painful layoff. If the organisation determines that the staff requirement over an extended period is much less than its current strength, then Layoff is perhaps the best alternative. In such case, I would first like to ease out non or low performance; the people who are responsible for adding these excess staff without proper thought would be on top of my list.

I agree with wide salary cut as why to hire unncessessary staff so that you have to lay off. Keep your self organized and focused. 

Yes.Salary Cuts should be the better option than not having salary at all and the cut should be lower at the entry and mid level and higher on the senior management and need to be at more higher level at the CEO/CFO/group head levels.

I am agreed with this option...coz its irrelevant to retrench employees from the organistaion. When corporate has much better option to save interst of employees like cutting some extent of salary or saving from other Costs by prevention like Energy Cost, Travelling Cost etc... 

Obviously salary cut! No questions asked as you atleast you’ve some some backbone to support your family. Unlike US we don’t have unemployment support prog by government.

Across the board salary cuts should be the first step in the response to a slowdown, rather than a more permanent one like Lay offs.

If any body needs to understand the answer I hope salary cut is best option :

i) Lay off is done ultimately to reduce cost so the same can be achieved by reducing salary ,perks & expenses.

ii) Lay off ultimately increases pressure on all grades of employees so at a cruch time best staff may also be loosed.

iii) Lay off always have legal hassel when the company is bigger I mean more than 1000.

iv) Lay off always shows that institutional HR system is a failure in many ways.

v) Some how Layoff is not always possible in service industry & therefore it can only be done in labour intensive industry.

at the current economic situtation I think most of the companies should be very cautious in terms of lay off .

ya ... for the sake of employee instead of layoff , salary cut can be considered .coz i feel it not only increase no of experianced and talaented unemployed persons instead of fresher tagged unemployed people. 

so its again one more  big issue...