Which is better?
In the current layoff scenario, I wonder is there any other way to handle it?
I actually voted “10% paycut for all employees" but after a short thought to myself it should be "Layoff 10% of the employees".
And what is the reason?
Due to the recent hike in online growth (covid 19 caused) there was a spur in hiring, a major workforce that was added was a high on experience low on talent kind of crowd.
So if you introduce pay cut to paychecks of people who are giving a higher ✌️bang for buck✌️ They might as well slack and might bring the average performance of employees even down.
It's better that a re filtering kindof process is in place due to these layoffs. But all this is dependent on the factor that a company is highly analytical about its layoff.
It is a low-key " For the greater good " .
In my companies, we started with leadership team taking a good cut for a year. Then, we requested new joiners to work at their previous salaries. Eventually, managed to survive the entire COVID period without 0 layoffs.
This is a great method
The people at the top can affor the cuts, having a sizable margin to suffer set backs while people at the bottom cannot
You mean, with 0 layoffs?
My previous organisation went with the 2nd option. While it looks good on paper and when it is announced to the press, it's actually a horrible place to be in. Indian companies work you double time while giving you lesser pay and most of them give you a new offer letter/pay slip for it as well. So if you want to jump, your new payslip shows a much lesser amount
Companies that cut deep early have a much better chance of survival, sadly.
Market might be bearish for the next 1.5-2 years. Starting with just a 10% pay cut to all employees won’t be as effective as multiple early rounds of layoffs.
That's what Ashneer Grover said. Not that he is a great guy but this advice makes sense for many companies.
5% layoff is expected during the period of overhiring. Only problem is to let go of the people who are with the company for so long.
Voted for paycut, yet after reflecting on the possibility of mistrust/abuse of trust from higher ups, maybe layoffs would better if not executed analytically and respectfully.
Will it last years of recession, I don't know. I do hope though
I have voted for 10% paycut for all employees but the condition is there should some pay parity between team and experience. Else layoff the most expensive and the recent joinee.
From a founders perspective:
- Company needs to survive. Cut down on all new initiatives(you don’t know what the results will be). It’s best to stick to previous initiatives which gave the company a stable growth.
- Keep only the best performers and cut down the average and worst performers.
- Focus on organic growth and decrease inorganic expenditure. In case ROI is way better through inorganic acquisition, reduce by 5-10% m-o-m and see the overall revenue growth / ROI.
- Check leadership. You may need to take tough decisions. Too many leadership positions aren’t required. You can still do with L2 leaders.
