How to cut costs without cutting staff


During the Great Depression of the company Pella Iowa, instead of dismissing employees, instructing them again and again to wash the windows, which the company could not sell. And in our days, FedEx, Dell and Motorola are looking for their own tactical decisions to avoid having to pay expensive compensation for layoffs - at the same time a certain number of employees to all of them, in any case, it had to be cut. Peter Cappelli, director of the personnel department of the Center for the Wharton Business School notes that the reduction of wages by 5% costing the company less than a 5% reduction in staff.

Some companies manage even reducing salaries to motivate their employees. Matt Cooper, vice president of staffing agency Accolo, asked its employees to take five days of unpaid leave in the current quarter, and in return he will not cut wages until March. If during this time will be signed any big deals, it will terminate the reduction.
Examples of alternative cuts in different companies

Rhino Foods: Exchange of staff

The Rhino The company, which makes biscuits for ice cream Ben & Jerry's, during the recession sends its employees to help other companies, this time 15 people per month were sent to work at a company Autumn Harp, which produces hygienic lipstick.

Nucor: The three-day working week

Metallurgical Company Nucor since 1966 supports a policy of "no cuts". Now that the quarterly profit of the company fell by 71%, the company is working at half their capacity, which means a three-day working week for most employees. Three days a week working and employees of the Ulyanovsk Automobile Plant (UAZ, part of the holding Sollers). As the CEO of the company, a three-day working week will remain until April inclusive.

Luxury Retreats: Rearrange employees

Real Estate Agency recently transferred 8 of its 75 employees from departments such as development department, the position of generating income, such as sales department.

Winthrop University: Leave without pay

Announcing the six-day leave without pay for all employees of the university, the university president had after some time, to extend the holiday for another three days to learn that the government cuts back their budget by 7%.

Best Buy: The increase in compensation

Best Buy Company in December suggested that almost all of its 4,000 employees higher compensation if they agree to resign. Five hundred people took up the offer.

Sherwin-Williams: «Get out of yourself"

On some of its business the company Sherwin-Williams floated the schedule of voluntary Provisional Suspension for six weeks. Employees can not choose the date, but they know when to expect the suspension from work, and can be stored in the order queue. The salary for this period they do not get, but all the other benefits are maintained.

FedEx: pay cuts

The company announced a reduction of wages by 5% to 36 thousand. Employees. Salary management will be reduced to 7.5-10%, and CEO Fred Smith will receive 20% less.

Motorola: Freezing salaries

Motorola has announced that it will not raise salaries in 2009 in the majority of countries where the works.

Sprint Nextel: No new staplers

The telecommunications company has suspended the purchase of office supplies, allowing just one quarter in 2008 to save $ 17.6 million. According to the company spokesperson, everyone is happy and just now the exchange office supplies as needed.

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