3 ms·
This ignores the morale. I've been in both situations and the pay cut definitely felt like "we're in this rough economic situation together". Compare this with
by TrainedMonkey 4y ago
This ignores the morale. I've been in both situations and the pay cut definitely felt like "we're in this rough economic situation together". Compare this with a layoff where I made my peace while waiting for "you still have a job email" and started interviewing shortly after. Of course pay cuts always ignore shareholders as they are really getting the benefit of paying less for same number of people.
- deleted 4y ago[deleted]
- roncesvalles 4y agoExactly. I think a 10% pay cut with no layoff would create a sense of job security that most people would consider well worth a 10% cut.
- halgir 4y ago> Of course pay cuts always ignore shareholders as they are really getting the benefit of paying less for same number of people. Perhaps this could be mitigated by equity-based compensation equal to the amount reduced in salary. It won't make up for the lost cash, especially if the company is in a place where it needs to take such measures, but it would give more meaning to the "in it together" message.
- Gibbon1 4y agoBack before shares were liquid assets a shareholder often was required to put money back in the company when it hit a rough patch or lose their shares.