is it a must to reduce the total number of staff members on payroll to reduce cost?

[Ghost1]

Once profit has reduced it's only right to cut cost. One of the ways is reducing employees. Why keep them when you can't pay, it's bad for business

 

[Ceeny007]

If you decide to trim your workforce when there is need to retain them to achieve greater productivity,it will affect the output of the firm

 

[Toyoabasi]

Business at times deploy some dirty strategies to reduce the cost of production and operations. Decreasing the total amount of on payroll expense can increase the money available to invest in other areas of the business. Most business owner lower their payroll expense which affect the quality of their product and/or service. Decreasing payroll expenses can place extra burden on your remaining employees and cause quality to suffer.

.......what are your views?

If this is done just to reduce costs, it is very wrong.
When the number of staff decreases, there would be shortage of hands, and low productivity might be the story of such organization. There should be other ways to reduce wage .

 

[Elfinito]

When there is less wrok to do then you certainly need to reduce the number in the payroll so you can have more profit

 

[Josan]

It depends on the capacity of the company as the income, if it's demanding to drop staffs for the sake of cost, there's nothing wrong so far the balance of your company is achieved.

 

[Heatman]

When you have few people to pay salaries or wages, you will definitely be cutting off a decent amount of cost/expenses by getting few people to do the work of many and pay them as little as possible.

 

[Yudi898]

It depends on the management.
If enough sells is always made and the availability to pay all staffs on the payroll is there, then there's no need to reduce the list of payroll

 

[Ghost1]

Yes it is a must to reduce the number of staff on payroll to reduce cost, imagine the average scalar is 50,000 but you have 10 workers and you are paying them 30,000, normally if you know you can do with just 6workers and the 50,000 salary will be constant, it is advisable to just reduce the workers and increase the salaries of the remaining ones to make them happy.

Your analysis is very good. The expenses must not be more than the profits one of the expenses is employee salaries. It's only wise to cut some off

 

[Lucy ID]

It's not a must you should do that, you can find other ways or alternatively to do so, you can reduce the rate at which you product goods or remove unnecessary spending

 

[Ceeny007]

In as much as it is pertinent to reduce the number of staffs to save cost if the organization becomes under staffed,it is going to strain the existing work force which will affect productivity

 

[Oliver4smile]

Business at times deploy some dirty strategies to reduce the cost of production and operations. Decreasing the total amount of on payroll expense can increase the money available to invest in other areas of the business. Most business owner lower their payroll expense which affect the quality of their product and/or service. Decreasing payroll expenses can place extra burden on your remaining employees and cause quality to suffer.

.......what are your views?

If you notice that you are not making enough money to cater for all the employees in your company, the I think you should consider laying some of them off and managing the number you can afford to manage.

 

[Heatman]

I'm of the opinion that if have a few people working for your business will not affect your business productivity, then sacking a few of them wouldn't be a bad idea to cut cost.

 

[Ellamma]

I strongly agree with you. Reducing payroll in your company will only add more burden to your employees and reduce the quality of service and production.

 

[Heatman]

There is no point in having many staffs that you are paying salary that are not turning up in product output that will raise your income in the end, so if they are not useful it's better to let them go.

 

[Kubiat-Abasi]

It depends on the financial strength of the organization. Also, the renumeration could be reduced in order to accommodate more workers.

 

[Kelly5]

If the need arises for such action to be taken, then the business owner has no choice or option than to carry out that education in size of the workforce or else the business will benth none that'll suffer loses

 

[Partisan]

It is not the most if you have a team of lucrative staff that walk hard a you believing them and the strife to deliver on their daily tasks thereby generating profit for the organisation there's no need

 

[Bright7777]

It is never a must, there at other ways to cutting cost like reducing the salaries of everyone in the company or taking away some privileges given to the workers like paying for their transportation and so on.

 

[Godspower]

Laying off staff can be an effective cost cutting measure, but it is also important to consider the welfare of the affected persons if such a measure were to be adopted. Discussing a pay cut might have a less damaging impact than complete disengagement.

 

[Ezekiel]

I feel situations on ground determines that,I have seen company firing their workers not because they did anything wrong but because they need to balance the business,I will say yes you need to reduce the number of staff on payroll to reduce cost