Comments on: Job Cuts or Reduce Your Pay? http://moneyning.com/career/job-cuts-or-reduce-your-pay/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Mon, 15 Mar 2010 22:13:24 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Rob - Credit Card Debt Law http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13109 Rob - Credit Card Debt Law Tue, 20 Jan 2009 00:11:35 +0000 http://moneyning.com/?p=2058#comment-13109 I think it depends on the company and the positions of the employees being asked to sacrifice their pay. If they are making 60-100 K + a year (depending on the amount of schooling for the position), then I don't think that anyone can complain too much about a pay cut. Check that - over course they will complain. But under a certain amount of yearly income, I think laying people off makes more sense. In the last position of one of my friends, he would have been better off on unemployment than taking a pay cut. I think it depends on the company and the positions of the employees being asked to sacrifice their pay. If they are making 60-100 K + a year (depending on the amount of schooling for the position), then I don’t think that anyone can complain too much about a pay cut. Check that – over course they will complain. But under a certain amount of yearly income, I think laying people off makes more sense. In the last position of one of my friends, he would have been better off on unemployment than taking a pay cut.

]]> By: lOLA http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13106 lOLA Mon, 19 Jan 2009 21:01:33 +0000 http://moneyning.com/?p=2058#comment-13106 I am in this postion right now. My company has choose to cut everyones pay without giving us a choice. I have been here longer then most and would rather be laid off. I have not decided if I am going to agree to the pay cut yet. I am in this postion right now. My company has choose to cut everyones pay without giving us a choice. I have been here longer then most and would rather be laid off. I have not decided if I am going to agree to the pay cut yet.

]]> By: Sam http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13079 Sam Sun, 18 Jan 2009 21:07:44 +0000 http://moneyning.com/?p=2058#comment-13079 I would go for pay cut, I would be afraid I couldn't get another job in this market. Things are starting to get scary. I sure hope things turn around soon. I would go for pay cut, I would be afraid I couldn’t get another job in this market. Things are starting to get scary. I sure hope things turn around soon.

]]> By: Kate@LivingTheFrugalLife http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13070 Kate@LivingTheFrugalLife Sun, 18 Jan 2009 16:39:39 +0000 http://moneyning.com/?p=2058#comment-13070 I would say the employer should, so far as possible, leave it up to the employees, as Marci's did. If they still couldn't balance the books after trying that strategy, along with a hiring freeze and other cost cutting measures, then I would say a pay cut is the best solution. Half a loaf is better than none. I think at that point, having been treated with honesty, and having been given some choice in the matter, the employees would understand. And if they felt their prospects on the job market were good enough to jump ship, then the paycut would only be a further motivation. If the job market sucked, they'd probably realize that they were lucky to still have the job, even if the pay were lower. I would say the employer should, so far as possible, leave it up to the employees, as Marci’s did. If they still couldn’t balance the books after trying that strategy, along with a hiring freeze and other cost cutting measures, then I would say a pay cut is the best solution. Half a loaf is better than none. I think at that point, having been treated with honesty, and having been given some choice in the matter, the employees would understand. And if they felt their prospects on the job market were good enough to jump ship, then the paycut would only be a further motivation. If the job market sucked, they’d probably realize that they were lucky to still have the job, even if the pay were lower.

]]> By: Mark http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13024 Mark Thu, 15 Jan 2009 19:55:12 +0000 http://moneyning.com/?p=2058#comment-13024 It depends on which employee you are. If you are the employee that would be fired, you want the employee pay cuts. If you are the employee who will get to keep their job then job cuts are your preference. It depends on which employee you are. If you are the employee that would be fired, you want the employee pay cuts. If you are the employee who will get to keep their job then job cuts are your preference.

]]> By: Doctor S http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13003 Doctor S Thu, 15 Jan 2009 04:10:28 +0000 http://moneyning.com/?p=2058#comment-13003 Don't cut my salary, cut jobs, we have lenty of baby boomers just filling in their time sheets at my company of over 12,000 employees. These senior members are just sitting around collecting paychecks, adding zero value to our bottom line. Don’t cut my salary, cut jobs, we have lenty of baby boomers just filling in their time sheets at my company of over 12,000 employees. These senior members are just sitting around collecting paychecks, adding zero value to our bottom line.

]]> By: Ross http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13001 Ross Thu, 15 Jan 2009 02:30:19 +0000 http://moneyning.com/?p=2058#comment-13001 Salary cut on a low paying AND high paying job is devastating! Who would ever want to get a salary cut? I agree with everyone that salary cuts will kill moral at any company! Giving the decision to employees is quite interesting although not everyone will be happy. I would be surprised if people don't just take extra days off and then look for jobs during those days. Great question and post! Salary cut on a low paying AND high paying job is devastating! Who would ever want to get a salary cut? I agree with everyone that salary cuts will kill moral at any company!

Giving the decision to employees is quite interesting although not everyone will be happy. I would be surprised if people don’t just take extra days off and then look for jobs during those days.

Great question and post!

]]> By: Emily @ Taking Charge http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-13000 Emily @ Taking Charge Thu, 15 Jan 2009 01:44:28 +0000 http://moneyning.com/?p=2058#comment-13000 Yikes, this is a tricky one. But I think cutting jobs is the answer. Cutting salary isn't a big deal for those who earn big bucks, but for people like office assistants or customer service people who earn $12/hour, a pay cut on a low-paying job would be devastating. I agree with Steve that pay cuts will cause good people to leave, and would piss the whole company off. A company would probably be better just cutting a small amount of jobs than reducing <i>everyone's</i> pay. Though it is kind of a damned if you do, damned if you don't situation. Yikes, this is a tricky one. But I think cutting jobs is the answer. Cutting salary isn’t a big deal for those who earn big bucks, but for people like office assistants or customer service people who earn $12/hour, a pay cut on a low-paying job would be devastating. I agree with Steve that pay cuts will cause good people to leave, and would piss the whole company off. A company would probably be better just cutting a small amount of jobs than reducing everyone’s pay. Though it is kind of a damned if you do, damned if you don’t situation.

]]> By: Steve C|MyWifeQuitHerJob.com http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-12999 Steve C|MyWifeQuitHerJob.com Thu, 15 Jan 2009 00:50:34 +0000 http://moneyning.com/?p=2058#comment-12999 Job cuts and it's a no brainer. If you cut everyone's salary, you'll piss off the good people at your company and they'll leave. By making job cuts, you are trimming the fat off of your company which will work out better in the long run. Job cuts and it’s a no brainer. If you cut everyone’s salary, you’ll piss off the good people at your company and they’ll leave. By making job cuts, you are trimming the fat off of your company which will work out better in the long run.

]]> By: marci http://moneyning.com/career/job-cuts-or-reduce-your-pay/comment-page-1/#comment-12998 marci Wed, 14 Jan 2009 21:43:17 +0000 http://moneyning.com/?p=2058#comment-12998 With the day cuts, and not the job cuts, we were all still getting in over 30 hrs per week - which is what we need to keep our company paid health insurance... so that was a reason some people chose to lose a day also. At least the health insurance was still company paid. While it would be paid also during a lay off, the employee would have to pay back the premium from future earnings, which is difficult to do! With the day cuts, and not the job cuts, we were all still getting in over 30 hrs per week – which is what we need to keep our company paid health insurance… so that was a reason some people chose to lose a day also. At least the health insurance was still company paid. While it would be paid also during a lay off, the employee would have to pay back the premium from future earnings, which is difficult to do!

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