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

[tyrim88]

one of he reason that will make an organisation to lay off its employee,could be as a result of the m not meeting up with the financial obligation to maintain it staff strenght,one way to help the situation is to reduce the salary of the workers rather than sack.

 

[Shigobad20201]

Sometimes laying off some employees in an organisation if the company is having financial issue is the best thing to do rather than keeping them and going bankruptcy .

 

[Sincerem]

Sometimes laying off some employees in an organisation if the company is having financial issue is the best thing to do rather than keeping them and going bankruptcy .

But you are leaving unemployed people into the society. For me I prefer a situation that these people were not being employed in the first place. This is better

 

[Joseph555]

I don't think it's right to just lay of some workers simply because you want to reduce cost and have extra cost to be able to put in your business, you can always make your staff work harder so that you people can gain more profit.
Like

 

[Sotherefore]

When your business is not capable of paying the available employees , you do not have any other option than to reduce them so as to be able to pay and still remain legit. Just that a lot of people will lose their job. That is all.

 

[Imran_Noori]

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?

It depends, most of the big companies fire there some stuff to reduce the cost but small companies can not do it because they need the employees to control the situation.

 

[Agbalagbaa]

That's possible but is all up to you, if you are the one managing the business I'll advise you to do what you find that works out for you, that's the best way to get it right.

 

[nana kwasi1]

Yes, if necessary, you must reduce your staff in order to cut costs because, in my opinion, it is preferable to relieve your staff than to keep people working for you for more than a few months without pay. This is one of the challenges that businesses occasionally face.

 

[Nadiel sahmen]

If you wish to cut costs by shorting or firing some of your employees, you should take into account that this could lower production. You should also determine whether the employees who are still employed can do all of the company's tasks.

 

[Eli342]

You must cut the number of personnel you have in order to lower your payroll costs, but keep in mind that if you do so, productivity will undoubtedly suffer.

 

[frederick_9]

If you want to cut costs by shorting some of your employees, you must take into account that this move may limit your production. You must also determine whether the employees who are still employed can do all of the company's tasks.

 

[Skysaint]

Your company should know the number of employees that they need to run the business or organization effectively. The number of your employees shouldn't be greater or less than that amount.

 

[Shigobad20201]

Instead of reducing the total numbers of workers , you can actually increase the number of your production which will bring more money to you as the owner of the business.

 

[Sincerem]

Instead of reducing the total numbers of workers , you can actually increase the number of your production which will bring more money to you as the owner of the business.

The number of production can only be increased as the demand for such products or services increases , you can't increase it when there is no demands for what you are interested to sell.

 

[Eli342]

That becomes necessary when business i not going as planned income and at that particular time the wise to do is release some of your employees to reduce your loss and be able to afford paying the rest

 

[Setho]

The first thing your business will attempt to do it is to reduce the amount they are actually spending like suspending projects that they do not need. They should also seek government support before trying to lay off employees.

 

[Shigobad20201]

Whenever you have the thought of reducing the cost of the money you are spending out , you should also think about the work the workers are doing , if it won't be too much for them to handle

 

[Jonaville1]

In general, there are two causes for the high cost of labor, namely the improper placement of machines and production equipment and a work atmosphere that is not conducive so that workers do not feel comfortable working. To reduce labor costs does not mean that companies reduce the number of existing workers. It is better if you make improvements to the placement of machines and equipment so that they can work effectively. In addition, fixing the workspace so that the workforce is more comfortable and productive. all of these things will have an impact on production costs.

But there are times that a particular number of staffs is what a company needs and they will be affected if they reduce the number of those staffs because they want to reduce cost

 

[Robert90]

Reducing the number of employees on the payroll may have unfavorable effects, such as lower morale, lower productivity, and more work for the remaining employees. Businesses must also be careful not to violate state and federal wage and hour rules when reducing the pay of exempt personnel.

 

[Syldan]

Actually yes to some instances even though it depends in the situation.

If the numbers of staffs is very high that a company can not afford due to low productivity, it's advisable to reduce the numbers of staff to cope with financial challenges.