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Layoffs are to save money. Many companies will rather layoff 1 person making above market rate than 2 making below market rate. Performance is obviously a facto
by b4je7d7wb 4y ago
Layoffs are to save money. Many companies will rather layoff 1 person making above market rate than 2 making below market rate. Performance is obviously a factor, but not the only one.
If you have aggressively negotiated your cash compensation very high based on high performance during an economic boom you are at a high risk of getting laid off when the economy turns around. Imagine a graph with performance and compensation as axises, anyone below some slope is a layoff candidate.
- version_five 4y agoWell yes, performance is always relative to comp. The expectations for someone making 400k per year are higher than for someone making 100k. If you're not living up to the expected value for someone making your comp, you're underperforming.
- Supermancho 4y ago> Well yes, performance is always relative to comp This is transparently false. Expectations are relative to comp.
- b4je7d7wb 4y agoFair enough. Maybe that's the reason "good employees" get laid off. They are good from a coworkers perspective, but just not good enough for their pay. (assuming all measurements were meaningful and objective)