At my company here and several others, companies are taking steps to further reduce costs to sustain themselves in their industry.
Most companies approach this through either pay reductions, suspending bonuses/raises, or lay offs.
Depending on the industry, the cost of labor is not always the highest. It always seems to be the easiest to reduce costs on.
Do you feel that this is the correct approach companies should take? Aren't there other things they may be able to reduce costs in such as utilities or other options?
My personal opinion is that sometimes it is necessary, but I do not always feel it is the right course of action to take. If you really start burning the people that you need to run the business, once the economy starts climbing back up, they're going to be a mercenary on the hunt. Job loyalty doesn't exist like it once does, whether it is companies just not taking care of their employees or employees becoming selfish, I do not know. This seems to be pretty true of companies, that several people jump ship to other companies after things like this happen, at least from what I and others I know have observed.
Discuss.
Most companies approach this through either pay reductions, suspending bonuses/raises, or lay offs.
Depending on the industry, the cost of labor is not always the highest. It always seems to be the easiest to reduce costs on.
Do you feel that this is the correct approach companies should take? Aren't there other things they may be able to reduce costs in such as utilities or other options?
My personal opinion is that sometimes it is necessary, but I do not always feel it is the right course of action to take. If you really start burning the people that you need to run the business, once the economy starts climbing back up, they're going to be a mercenary on the hunt. Job loyalty doesn't exist like it once does, whether it is companies just not taking care of their employees or employees becoming selfish, I do not know. This seems to be pretty true of companies, that several people jump ship to other companies after things like this happen, at least from what I and others I know have observed.
Discuss.