is it better to cut hours and salaries instead of jobs?
According to a recent Business Roundtable survey, 71% of CEOs plan more layoffs in the next six months. However, as an alternative to laying off workers, many organizations are choosing to reduce or freeze salaries. Most have made larger cuts for senior executives and smaller ones for workers. According to a recent Hewitt survey, some 16% of companies in a study of 518 large U.S. employers have made base salary reductions during this recession, and another 21% say they are considering one. During the 2001-02 downturn, the number was so marginal that Hewitt didn’t even publish the results. In past downturns, many organizations have been hesitant to cut salaries because of the perceived negative impact on morale and productivity among workers. However, in the current recession, many employers are arguing that it is better to take a pay cut and keep your job than it is to not take a pay cut and possibly lose your job. However, pay cuts can have unintended consequences with regard to retai
