Reduce the staff or cut down the salary?

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Reduce the staff or cut down the salary?
Mar 3, 2009 19:59
KATRINA Points: Join Date: Nov 29, 2004 Status: offline	Facing the escalating global financial crisis, those corps and companies start to reduce their staff or cut their employees' salaries to save the cost and survive the crisis. The unemployment in China is going up. Very terrifying! If you were a boss of a company, which method will you take, reducing the staff or just cut their salaries or taking both methods?

Mar 4, 2009 21:01	#1
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	In Japanese enterprise, idle staff usually kept even in economic down turn (current crisis has made JP break the social responsibility rule), that's why JP employees are very loyal and contribute as much as they can without the worry being kicked out once they are squeezed out. While in US or in North America, labors know the more they contribute, the less FOOD left for them. So they are quite skillful in how to protect themselves instead of working hard. BTW, I saw this statement in an academic report that states the reality. Job and salary/benefits cuts (LEAN) seem to be a long term strategy even after this crisis, which you can see from GM wiping off hugh doubtful pension liabilties and kicking out labors with seniority entitlement.
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Last edited by MARRIE: Mar 4, 2009 21:55

Mar 4, 2009 21:05	#2
GUESTONG	REDUCE STAFF would be a better option; keep only the better qualified, or hardworking experienced staff and get rid of drifters or under-performing staff. Why should the good workers have to 'carry' the bad ones? When the economy picks up, you will be in a better shape with only good workers.

Mar 5, 2009 01:32	#3
JOSHIRV57 Points: Join Date: Oct 9, 2008 Status: Offline	At least you are not a accountant.

Mar 5, 2009 03:30	#4
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Reducing the staff can save the cost for these corps however they fail to fulfill their social responsibility. If the unemployment is getting more and more serious, it will menace social stability. That's why the government encourages the enterprises not to downsize the number of staffs.
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Last edited by JIMMYB: Mar 5, 2009 03:31

Mar 10, 2009 22:13	#5
SHESGOTTOBE Points: Join Date: Nov 23, 2007 Status: Offline	For the best interest of the business, the best way is to cut staff. In fact, businesses these days are taking advantage of the hard times as the best time to lay off people who are not productive or are not team players or liked. Once the economy gets back up, they can bet on new hires who could be better.

Mar 11, 2009 17:52	#6
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Economy seems to be getting into the second round downturn. Reducing staff and cutting benefits/salaries is unvoidable. With the development of technology assisted careers and more and more educated young folks entering into the working force, expertise, health and energy are basic qualities if you want to keep jobs or pick yourself up quickly after losing jobs.

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