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Lay Off or Pay Cut

Created by : Hitesh Thakkar, Project Manager, Sun Microsystems India  | 02 22 2009 14:46:22 +0000
Industry : Management & Strategy ConsultingFunctional Area : Productivity & Performance(Strategy & Execution)
Keywords : lay off job cut
Activity:  356 views;  last activity : 07 06 2010 20:18:09 +0000

Do you feel Lay off is right option against Pay cut?

Is it ok to cut cost and take les of the pie rather than cutting your hands by lay offs?

  
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Layoff Vs Cut Cost/Pay Cut
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Yes I like to cut cost across board by managing with less head count.

It gives me advantage of Thin Operations, Good control and stright cut on operation cost in single stroke.
By Hitesh Thakkar, Project Manager, Sun Microsystems India  02 22 2009 14:46:22 +0000
 
Top Argument
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I agree.

1. Pay cuts will retain all employees incl. talented ones.

2. Company does not need to go for fresh hiring, training once recession is over.

3. It would not create unemployment problem for the country.

4. Motivation level of employees will increase.

5. Company will have good public image.
By Akash , International Marketing Shabro  03 02 2009 12:20:37 +0000
Arguments in: "Lay Off or Pay Cut"
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Lay Off!. But it should be ensured that the selection of the people to let go off is justified.

Lesser and able staff would have a better focus on geting things done. Retaining the staff and geting them to contribute more hours for less pay is not a very viable solution for any organization on the long run. The peev factor amongst the employees would go up and the productivity would come down.

Yes, there would be a huge risk, but at the same time this risk would be manageable in a much better way than managing the 'soft' risks of the employees.
By Vijay Bhaskar, COO, Divami Software Private Limited  | 02 27 2009 04:32:49 +0000
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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
By Diptanjan Mukherjee, Team Leader -(Technical), Navayuga Infotech  | 04 08 2009 04:44:20 +0000
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Hitesh i somewhat feel that instead of firing the employees its better to reduce their salary because you may lose your most productive and efficient employees if you go on a firing spree. Also as akash rightly said it will set a bad example among the other employees of the organisation and they will also have doubts on their job security which is not good for the growth of the organisation.
By Sudeep Tarafdar, Senior Consultant, IBM  | 04 01 2009 07:05:37 +0000
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I will go by Cut Cost, By doing this, atleast those who are unemployed wll get back their jobs.

 
By Arti Arora, Branch Manager/Regional Manager, NII  | 02 22 2009 20:17:10 +0000
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