Choose your own company cuts in 2009 |
CNN just ran a story on company budgeted cuts in 2009. I’d vote for the holiday party being slashed (18%) in a heartbeat over the other options: lay off workers (26%), freeze hiring (25%), cut training (18%) and cut 401k match (4%).
Not to go all party pooper but holiday company parties aren’t what they are cracked up to be from either side. From the executive side, they are a liability as long as booze is involved. It’s rare in a big company to have everybody liking everybody else, so there are those weird, phony friendly exchanges. I’d much rather meet with people I work with in a smaller gatherings than one big holiday bash.
The last big holiday party I went to for our offline business was with other independent contractors in our area. Didn’t drink any alcohol but watched several people indulge too much and get stupid. Doubtful any read this blog, but if they do and if they are paying attention: don’t get too crazy drunk!
Here’s how I’d rank the pain from the list above from first item to be cut to last:
- Slash holiday party - smaller, less expensive gathering would be better
- Freeze hiring - no sense hiring more people
- Cut 401k match - if the money isn’t there, no need to contribute
- Cut training - without education it’s tough to turn things around, I’d prefer to see this slashed before removing warm bodies
- Lay off workers - should be last resort option for companies with vital employees, temp help or contract work could be pared back if it’s non-vital
How would you rank the pain?
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I would agree with the hiring freezes and slashing the holiday party (partly).
I very much disagree with nix’ing training. Especially if workers are pickup the cut workers jobs. You can never have too much training. You need it to be a well oiled machine to have your existing workers to be more efficient in these times.
I think large businesses have lost the picture of the customer. Make employees happy and train them to perform better. Hold and increase quality before trying to bring in more volume. If your product of service is good the competitions price won’t matter as much.
Personally I would trim the fat at the top of the chain first. Are we buying $32 pencils? What about the exec benefits? Is there some corporate club memberships somewhere for the execs? Company cars?
Whats goofy about all of this is that if the companies books were in the right proportion to begin with there wouldn’t need to be such drastic moves made. Payroll and inventory on credit? Come on. Just like a home budget, lets “live within our means”. Now corporations are pointing to the workers, and cutting their jobs and benefits because the corporation mismanaged themselves??
Comment by ^Lestat — October 29, 2008 @ 9:39 am PST
I wouldn’t always agree with the hiring freeze either. If you can hire someone who will make more money for the company than they cost, then that is a good decision in any state of business.
Yeah, the company party can go, even when times are good. I’ve been that drunken fool before. Think Karaoke.
Comment by Sterling Camden — October 29, 2008 @ 2:18 pm PST
I like the exec level cuts ideas, Lestat. Just imagine if AIG paid any attention to stuff like this.
Sterling I agree that replacement hiring should be considered in place of “hiring freeze.” That should always be happening regardless of environment.
Comment by TDavid — October 29, 2008 @ 2:27 pm PST
Yeah, Lestat has the right idea. Find the areas of waste and entitlement in the organization and get rid of them. Any good company should be doing that all the time, but especially when funds are tight that should get special attention. Maybe even get the execs to take a pay cut — don’t they have enough tied up in the future of the company to make it worth their while?
Comment by Sterling Camden — October 29, 2008 @ 2:34 pm PST
I’ve never understood the logic in ANY exec making millions or even six figure salaries while a company is going bankrupt. If the company is doing badly execs should be paid like every other employee — the going rate. CEOs and CTOs and other members bilking the companies for cash when it’s doing badly is the worst kind of corporate cancer.
Comment by TDavid — October 29, 2008 @ 2:39 pm PST
The sad thing is, that instead of asking themselves “How can we do better” they just start killing of benefits for the actual people (cogs) that do the work. Of course They shouldn’t have to cut back first, I’m sure its the low life production people
Comment by ^Lestat — October 29, 2008 @ 2:59 pm PST
They didn’t mention going to flex hours or adjusting the work week. Where I work we went to a 4 day 10 hour week over the summer and saved about $250k in energy costs in a 6 week period from totally shutting down for a day.
Comment by FranciscoIV — October 31, 2008 @ 7:30 am PST