Comments on: How to Tell Your Employees of a Coming Pay Reduction https://cruciallearning.com/blog/how-to-tell-your-employees-of-a-coming-pay-reduction/ VitalSmarts is now Crucial Learning Wed, 20 Feb 2019 22:47:31 +0000 hourly 1 https://wordpress.org/?v=6.5.2 By: Melanie Gao https://cruciallearning.com/blog/how-to-tell-your-employees-of-a-coming-pay-reduction/#comment-6787 Wed, 20 Feb 2019 22:47:31 +0000 https://www.vitalsmarts.com/crucialskills/?p=7640#comment-6787 I love the idea of pulling from both Crucial Conversations and Influencer to prepare for this difficult conversation. Thank you Cricket for making those connections.

Great to see you blogging! 🙂

]]> By: Frank https://cruciallearning.com/blog/how-to-tell-your-employees-of-a-coming-pay-reduction/#comment-6786 Wed, 20 Feb 2019 20:25:23 +0000 https://www.vitalsmarts.com/crucialskills/?p=7640#comment-6786 While showing the executive level is taking a greater cut, what would make the workers feel better is that the executive level take a cut that is the same percentage of their salary over the average worker. For example if the CEO’s salary is 10 times the average worker, then his/her cut should be 10 times more than the average worker.

Your example of a 2% vs 1% tells the workers the senior level doesn’t really care. Also the board members should not receive any compensation or benefits due to this cutback until the company is back on its feet. Certainly there should be no bonus or deferred retirement paid to senior executives during this period.

Workers living paycheck to paycheck are tired of seeing leadership skate by with no real pinch to them. If the company is now at the stage of cutting salaries, workers have probably already seen increased costs to their benefits, and also the workers have a right to know just how bad the situation is, no sugarcoating it. Can the company survive and prosper or is this just a move to extend the inevitable.

Gens X,Y & Z view work as a partnership, if you want a dedicated employee you had better buy in to this philosophy. Otherwise the worker will do some quick computer research and find out the real situation and plan accordingly. They are not going to work 35 years for the same company in the same job out of loyalty.

]]> By: John Shoucair https://cruciallearning.com/blog/how-to-tell-your-employees-of-a-coming-pay-reduction/#comment-6785 Wed, 20 Feb 2019 15:36:51 +0000 https://www.vitalsmarts.com/crucialskills/?p=7640#comment-6785 Re paragraph 3, if the employees provide ideas to offset the pay cuts, would management consider cancelling the proposed pay cuts? Should that be included in the message? Otherwise, it seems like the financial burden is already a final choice.

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