3 ms·

I wonder, in such moments is it better to layoff completely or put the employees in perhaps pre-aggreed 20 to 25% work regimes, in order to be flexible when the

by kensai 7y ago

I wonder, in such moments is it better to layoff completely or put the employees in perhaps pre-aggreed 20 to 25% work regimes, in order to be flexible when the times are good again? Because eventually, they will.

deleted 7y ago
[deleted]
freepor 7y ago
Most employees will not accept this and would rather go work somewhere full time, and can find such work since the FAANGs shouldn’t be too harshly impacted.
- tmpz22 7y ago
  Right but you'd be utterly naive to expect companies which are still hiring to hire on the same generous terms of one year ago. I fully expect compensation, perks, and the "hiring bar", to begin to strongly favor the hiring companies who now get an even better pick of the litter.
- barbecue_sauce 7y ago
  I think you're being a little overly optimistic. FAANGs will have pick of the litter, they're not just going to absorb all refugees from travel tech.
  - freepor 7y ago
    Right, but I feel like almost any Airbnb engineer can get more than 25% of their salary somewhere.
    - barbecue_sauce 7y ago
      But why do you feel that way?
      - freepor 7y ago
        Because software engineering is valuable even in a recession, and someone will be willing to pay someone more to work than Airbnb will pay them to not work.
- esturk 7y ago
  You are right that most won't be happy, but any hiring will only occur after the pandemic is over because there's not enough personnel to do interviews right now. As for what happens after the pandemic, things might be back to normal.
kerneltime 7y ago
During the 2008 crisis, EMC^2's CEO Joe Tucci announced a company-wide cut in salary instead of laying off people... I think that was a prudent decision. Keeps morale high, team culture intact and plans in place. They did change the ESPP rules (close price) but never restored the old ESPP (min of open and close) after they restored the pay :-P
koolba 7y ago
I doubt it as the great employees will find jobs elsewhere and you’ll be left hanging onto the bottom of the barrel that knows they’re not worth the %25. They won’t leave until laid off as they’d know they can’t find meaningful work elsewhere. Best bet is to lay-off fast as possible, as much as needed, so that’s it’s done and not hanging over the heads of your workers. Nobody wants to wait on the deck of a sinking ship.
Neismark 7y ago
It's called 'Kurzarbeit' (short work) in German. That's what brought Germany comparatively well through the financial crisis 2008. The cost of hiring and training new personnel are pretty high, actually. It's usually much cheaper for a company to keep its staff than being forced to hire new people after a (short-term) crisis is over. "Kurzarbeit" does allow a company to keep their employees and only pay a part of the wages. Some of the rest is paid by the government, and wages are a bit lower than usual. That means: The cost is distributed between company, state and staff. Which seems a pretty good way to get through a crisis.

by kensai 7y ago

deleted 7y ago

[deleted]

freepor 7y ago

Most employees will not accept this and would rather go work somewhere full time, and can find such work since the FAANGs shouldn’t be too harshly impacted.

tmpz22 7y ago
Right but you'd be utterly naive to expect companies which are still hiring to hire on the same generous terms of one year ago. I fully expect compensation, perks, and the "hiring bar", to begin to strongly favor the hiring companies who now get an even better pick of the litter.
barbecue_sauce 7y ago
I think you're being a little overly optimistic. FAANGs will have pick of the litter, they're not just going to absorb all refugees from travel tech.
- freepor 7y ago
  Right, but I feel like almost any Airbnb engineer can get more than 25% of their salary somewhere.
  - barbecue_sauce 7y ago
    But why do you feel that way?
    - freepor 7y ago
      Because software engineering is valuable even in a recession, and someone will be willing to pay someone more to work than Airbnb will pay them to not work.
esturk 7y ago
You are right that most won't be happy, but any hiring will only occur after the pandemic is over because there's not enough personnel to do interviews right now. As for what happens after the pandemic, things might be back to normal.

kerneltime 7y ago

During the 2008 crisis, EMC^2's CEO Joe Tucci announced a company-wide cut in salary instead of laying off people... I think that was a prudent decision. Keeps morale high, team culture intact and plans in place. They did change the ESPP rules (close price) but never restored the old ESPP (min of open and close) after they restored the pay :-P

koolba 7y ago

I doubt it as the great employees will find jobs elsewhere and you’ll be left hanging onto the bottom of the barrel that knows they’re not worth the %25. They won’t leave until laid off as they’d know they can’t find meaningful work elsewhere. Best bet is to lay-off fast as possible, as much as needed, so that’s it’s done and not hanging over the heads of your workers. Nobody wants to wait on the deck of a sinking ship.

Neismark 7y ago

It's called 'Kurzarbeit' (short work) in German. That's what brought Germany comparatively well through the financial crisis 2008. The cost of hiring and training new personnel are pretty high, actually. It's usually much cheaper for a company to keep its staff than being forced to hire new people after a (short-term) crisis is over. "Kurzarbeit" does allow a company to keep their employees and only pay a part of the wages. Some of the rest is paid by the government, and wages are a bit lower than usual. That means: The cost is distributed between company, state and staff. Which seems a pretty good way to get through a crisis.