Finding alternatives to layoffs; doesn't that seem an obvious solution?
@theproperator (2429)
United States
March 12, 2009 8:30pm CST
I just read an article on boston.com about a hospital that was finding alternative ways of saving money so that they didn't have to fire any of the lower wage earners. The employees are the ones coming up with the suggestions, such as working one day less a week, and giving up some vacation and sick leave.
http://www.boston.com/news/local/massachusetts/articles/2009/03/12/a_head_with_a_heart/?s_campaign=yahoo
I certainly applaud the act, but I was a little suprised that one of the solutions was for the nurses to forgo a 3% raise. Personally, I would have thought raises would have already been eleminated, but maybe it is a union thing.
Personally, the arts organization I work for has already done similar measures. We did let a couple people go, but since we were already rather minimally staffed, we had to get creative after that. Some people are working less days, and management instituted paycuts for all year-round salaried staff. 10% for the top earners (CEO, Artistic Director), 5% for the rest of the senior staff, 3% for everyone lower on the ladder. All the hourly workers, who earn the least, did not have to get fired or take a pay cut, since many are barely able to get by as it was.
So, has your company done anything beyond the norm to save money and jobs?
2 responses
@brady2moss (700)
• Singapore
13 Mar 09
Our company did a lot of "belt tightening" measures starting last January. Some of these are pay hike freeze, removing out everyone's home internet allowance, less travels, less food and beverage in our pantry, and revising our healthcare benefit. There were at least 300 workers cut, but most if not all of them are actually contractors from our vendors who we employ to give us quick and reliable support on the very same product they sold us. In other words, they still have jobs with their main company, they just lost their part time job with us, albeit a high paying one. I'm fore-seeing a few more changes coming up, but hopefully no more workforce reduction. Hopefully our company did enough to weather this storm.
1 person likes this
@theproperator (2429)
• United States
15 Mar 09
At least those who were let go still have a job. Hopefully, you are right about having done enough. Good Luck.
@sysdexlicwriter (1619)
• United States
13 Mar 09
My alternative to layoff is to start my own business. I was speaking to my sister this morning. We have been researching different types of management.
It turns out that something called "open book management" has been implemented in companies with great success. It is a management system that educates every person in the company as to how the money is being spent. Every person knows what every expense is. No surprises here as to the health of the company or how much each position earns. Employees are also shown how their work contributes to the bottom line of the company and their input is highly valued in company decisions. There are fantastic stories of everyone pulling together in these companies and the results are profits in an unstable economy.
I think anyone looking at the economy would be well advised to look for the success stories. What a way to find models that will work in any economy. Can you imagine a company's financial strength in good times if their structure is strong in bad times.
Even though this would be in my future, I would like to implement this when hiring employees. Also, if looking for a job, I would be looking for a company that follows this model.
1 person likes this
@theproperator (2429)
• United States
15 Mar 09
Sounds like a good way of keeping everyone honest, too, so no one is expensing out "business lunches" too often!
