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1. 28-05-2008 14:09

What about a pay cut?

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2. 28-05-2008 16:20

Heather, 
 
I agree with the idea of a pay cut, however, the number of hours worked a day has to match the pay as well.

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3. 28-05-2008 16:48

Cutting pay cannot work because pay rates are set in the market. Any recession only represents a general downturn - There are always some sectors that perform well. Your talent will merely move to more ompetitive pay rates leading to even higher costs associated with recruitment and time to competence.

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4. 16-06-2008 11:51

I believe mere cutting resource pay would not be a solution towards this. The reason being, the resources are very critical for any organization and cutting pay may either result in loosing critical resources or lower productivity because of downsized moral.  
 
Thus we need to view this topic from strateic aspect focusing on reaping long term benfits.  
 
One important thought of Ackermann and Dorr that i concur are regarding IT standarization(S) and consolidation(C). The other i want to add here is - "Functionalization" (F). 
 
Once we achive this SCF, the global organizations can fetch the ROI on infrastructure maintanence and support - no matter if this is managed inhouse or outsourced to a location which have the adjective: "High Talent and Low Cost".

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5. 14-08-2008 22:56

Lets see what they did @ a company I used to work at (until last Friday). 
 
Reduced head count by 15%, agency & employee. (Me too!) 
 
Not much emphasis on retaining "key" employees; more on getting rid of the older / more expensive ones with 20+ years as employee, or high pay grade agency.  
 
Retained all H1B's! (of course) 
 
Also have a high ratio of Indian & Chinese agency employees...60% or more. (This is a Midwestern Major Automotive OEM...) 
 
I'm amazed at how there is a claim that help is hard to find. High skill & talented? How about a friend... a recent PhD...Information Security...has been looking for 8 months. Personally, I was doing BA work, developing a facility to manage the companies in vehicle embedded software. (Masters degree, 25+ years experience manager, coder, business person). So I'm guessing that someone will say, "Oh, that's just Detroit. You should get out of there." Unfortunately, with older parents (in their 80's) & wife has a good job (she's a VP) there's really no place to go.  
 
Regarding the comment on cutting pay...heck, that's been done here in agency work over the last 5 years. When they announce to their vendors that everyone must take a 10% cut, agencies are vendors, and their employees get a swift cut of whatever was announced. So, I don't believe for one second there is any concern about retaining the "best" employees. Just the most expensive.

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