When a smaller paycheck is a good thing.
2/10/2003
More and more, businesses are cutting salaries rather than people in their attempts to weather the economic downturn, reports CareerJournal.com, via the CFO.com Web site. The plus for employers, other than a lower salary load, is that they are able to retain longtime talent. And for employees, a paycheck cut of 3 to 15 percent is better than an unemployment check. Companies opting for salary-reduction packages, according to the article, include public relations agency Fleishman-Hillard, chipmaker Conductus, and Deloitte Consulting. Bonuses in industries such as financial services are also likely to be pruned, according to the article, but workers in healthy sectors such as health care may still get a year-end performance bump.