If decisions to cut costs are in the long-term best interest of the company, executives should be willing to defer their rewards until positive results are demonstrated. This pay freeze shall continue for a one-year period following the completion of the layoffs.
Employees see their co-workers face the stress and financial insecurity of losing their job.
Many employees will be asked to assume additional responsibilities, learn new skills, and develop new customer relationships. A climate where executives reap enhanced rewards while their co-workers are asked to sacrifice can lead to poor morale and a deterioration in customer service. All rights reserved.