Assignment – Essay Example
Cutting Down on Labor Costs With the global economy seems hovering around in an uncertain several companies are trying to employ the best cost-cutting strategies to keep their businesses on the run. As such, employers are still seeking for the best possible way to maintain productivity without compromising quality and manpower. And difficult as it may seem, they may not even resort to laying off workers as a way to cut labor cost but they would rather adjust on cutting off wages and reducing work hours so to retain its manpower that will mobilize productivity and profitability. Employers may cut back on production, travel expenses and limit working hours, but seems least that they will be reducing manpower. Because in the long run, a company will soon find out that it can still meet production demands even with a smaller workforce.
Cutting down on labor costs can be tough for a large company that is dealing with a number of employees. As with the case of Toyota, it implemented working-scheme and cut back on travel expenses while avoiding massive lay off. In such cases, you could prevent the same ordeal by freezing hiring efforts, reducing employee travel expenses and working hours, limiting purchase of new office equipment, slashing bonuses as well as cutting back salaries. “Though some of these solutions may seem rash, a pay cut is much better than a job cut, and no bonus is still better than not having a job in three months” (JRG Advisors, LLC 2).
JRG Advisors, LLC. “Cut Your Costs without Laying Off Employees.” N.p., 2009. Web.
08 Nov. 2010.