"It is the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours." --- President Barack Obama
In his inaugural address President Obama made this poignant and specific appeal to the fairness, generosity and unselfishness of the American people to help restore the troubled economy to health. The unemployment numbers are increasing daily and millions of workers are threatened by job layoffs , cutbacks or permanent unemployment.
It seems sensible that in the current economic situation employers and workers would be constantly on the alert for methods to help prevent job losses and spiraling unemployment numbers. Why wouldn't companies be prepared to roll back employee wages by a certain percentage point rather than hand pink slips to its work force? Why wouldn't employees eagerly embrace a 10 percent salary cut in order to save their jobs and prevent job loss for themselves or others?
Employer short term greed and employee long term morale may be the prime reasons that such courses of action are not followed during times of economic chaos and stress. Recessions could arguably be shorter and more importantly less devastating if employees agreed to take temporary wage cuts during lean times and then receive wage increases in good times. In this scenario the boom-or-bust cycle of the market could be reduced.
Many employees would possibly opt for the temporary wage rollback as opposed to the nastier sounding wage cut. There would be an implicit understanding that this was a necessary evil meant to not only ensure the future of the company but also guarantee that when the economic tide changed and prosperity once again returned the employee's sacrifices and flexibility would be appreciated. But the insanity of the current economic times makes taking this course of action academic at best. And so wage cuts tend to be mandated.
Many companies today are top heavy. Mid level managers are desperately attempting to save their positions at the expense of the people they manage. Their immediate concern is the bottom line.They are scrambling and trying new and improved methods to motivate employees to be more productive and if possible eliminate waste and lower employee absenteeism. And so a flood of charts, graphs and employee performance statistics are given daily to their respective work force. All this is done with the hope that employees will jump on the bandwagon and march to the beat of the corporate drummers.
Employees on the other hand are equally as insightful. They fear being laid off or even worse terminated from their present employment situation. They fear that a wage cut , even a voluntarily accepted one, will minimize the overall value of their efforts. Many senior employees will feel that the company is undervaluing their expertise and skill. Many admit that accepting a temporary wage rollback does make sense. But they question the motives and the purity of their managers and corporate leadership.
It seems that wage rollbacks are worse for employee morale than layoffs. When workers are fired outright a wave of fear and discontent swamp the work force. The possibility then exists that every employee is vulnerable and that it's merely a matter of time until one's number is up. The effect of the firings is devastating but short term. Over time the event is accepted and life goes on. Things return to normal after a few weeks.
When wages are cut employees grumble and complain for months. The overall morale is lowered. The remaining workers begin to suspect that they have been mistreated by management. Sure they have their jobs but at what price to themselves? Then they wonder when their full paycheck will be returned., if ever. Hurt feelings and ill will towards the company prevail.
Many employers believe it makes more sense to fire employees. This act puts the workforce on its best productive behavior. They prefer to use an axe to solve situations rather than a scalpel to adeptly resolve their problems.
Economic bailouts and wage rollbacks offer short term solutions to long term problems. Appreciating your work force and the efforts they are making to prevail through difficult economic times should take precedence over productivity and bottom line concerns.Your workforce is your most important bottom line. Working together in a cooperative manner could reap untold benefits.
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