undefined | Better HN

0 points555553y ago0 comments

Conventional management advice -- at least that I've gotten -- is that you cam increase people's salaries, but you can't cut people's salaries. Without a very unique culture, they take it personally and will likely quit. Better to fire underperformers.

Side note: if staff took better to getting their pay cut, they'd get more frequent (faster) raises. When a company is suddenly more profitable, compensation increases lag far behind, as they have to first feel very secure of the higher profit level. After all, if it falls back to normal, they can't cut salaries...

Note: my personal experience is limited to managing a few dozen people and there are surely plenty of exceptions to the advice above.

0 comments

sys_647383y ago

It depends on the messaging. The company will often try to spin it as a mission where everybody is taking a hit so your colleagues can keep their job in difficult times. This is doing your part for the greater good. Me, I'd reduce my work effort by the equivalent amount.

rightbyte3y ago

> but you can't cut people's salaries

What? You can. Many companies even do it every year with some arbitrary bonus system.

55555OP3y ago

I said salary, not total comp. Employees often don’t consider bonuses as “true” salary as they aren’t guaranteed, much to the dismay of the employers who pay them with real money. Just my limited experience.

rcxdude3y ago

That does seem appropriate as opposed to making salary not guaranteed.

j / k navigate · click thread line to collapse