Question by shigirl_85: Is it wrong for a company to offer cutbacks rather than laying off employees?
With so many being laid off forced to go on unemployment is it unreasonable for companies to offer cutbacks rather than laying off their employees. Is it better to just go on employment and refuse their offer hoping a position will open up or is it better to ride it out? I have taken a reasonable cut back at work If I had not my company would have had to lay off two people for every person they maintained on full time hours and benefits which we maintained would you be upset with the cutbacks or not?
Best answer:
Answer by nico
its better to accept cutbacks compared to being jobless. however, if you can find another full time job then go grab it. but during this time changing jobs or careers in the middle of a crises would not be easy. you have to consider that you will have to start all over again and start as probationary employee. what if you are not retained after 6 months. you are jobless again. better hang on and just find part time jobs to augment your present income.
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We should probably ALL be upset with the cutbacks, as they represent the dismal state of our economy right now.
That being said, if the company feels that the situation is a temporary one, cutbacks make a lot of sense both to the organization and its employees. Consider: If a company lays off employees, then the laid off workers are out of a job completely, the remaining employees have to work a whole lot harder, and if the economy comes back fairly quickly, the company would have to pay to train new employees as business increases.
If the employees are instead retained, but with cutbacks, no one has to go out hunting for a job, overall workloads are lighter, and besides not having to train new employees, the company’s unemployment insurance rates are unaffected.
One potential pitfall to this, however, is if business doesn’t come back; then the company is likely to do layoffs anyway, all the issues in the previous paragraph come up, plus the remaining workers, now at the lower rates and with a heavier workload, are likely to be extremely demoralized.