Considering the tough economic scenario, we are seriously considering retrenching employees. We are also aware of the fact that it will deeply affect the morale of other employees. A few of our employees have expressed their willingness to accept salary cuts, rather than terminating staff from services. Kindly suggest a solution for this?
M K Modi
VINAYA — Pink slips should really be the last resort for any company to survive in a recession. The fact, that your employees have come forth to save the jobs of their colleagues, is indeed a gesture of solidarity. Have you tried to consider other overheads, other than man power costs? It’s easy to have a knee jerk reaction and start firing employees, instead of thinking out of the box and weighing other expenses. No matter how fair you try and make the process, there is always an element of subjectivity. It will impact the morale of your staff as well as affect you in the long term when you try to hire employees again, post the recession. This damage will be difficult to measure and curtail. You will only know of its impact when you will need to rehire and grow. Organizations in the service industry should never under estimate the damage they do to their reputation in the job market by firing during bad times.
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