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

[Dubai]

It is not a must to reduce staff in other reduce the money spent on paying staff. Although, If the number of staff is way too much, then you can downsize or retrench them. Sometime, the running cost of a business can be reduced by reducing wastage or maintenance cost. Downsizing is more likely to cut product which in turn affects the amount made by the company.

 

[Blessingedidiong]

Reducing the number of staff on the payroll is a technique most employers use to reduce cost in times of financial crisis. This step should be taken if it is extremely needed else the staff should be retained for the better running of the business and the output required of the business.

 

[maventiger]

I think its not a necessity to work with a large number of employees, so if it is a small worker you want to work with and you guarantee those worker that you will pay them well why not. I think a little number of worker will work effectively.

@Sanusi working with small number of employees will work well for the management as it saves them cost with assurance of same level or productivity. If the management agree to that, the staff members will struggle to maintain the level of productivity in the short run.

 

[IamDozzy]

It is either you do that or you slash their pay. You have to choose one of them and I would suggest you choose the lesser evil. Reducing cost and making profit is the Number one goal of every business venture and so when the business can no longer handle cost, there has to be a way of reducing cost. It's either you reduce manpower, lower your quality or slash salaries. In some extremely unfortunate situation, some companies do the three.

 

[Mastercoded]

it very possible to reduce the number of staff in a business payroll if the business is not bringing in enough money that will sustain staff welfare and bring enough money to the owner. for example, during the corona virus pandemic a lot of company and business firm have to lay off some of it worker as they are not making enough money, some went as far as slashing staff salary

 

[Adventurer]

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 is wrong to do so but some times it become necessary if the company is having some financial challenges.
In a situation like that you address the staff and make them understand the need to cut down payroll and make sure it is a temporary situation as soon an things pick up increase their pays back.
Employee welfare is important to the success of the business.

 

[maventiger]

It is wrong to do so but some times it become necessary if the company is having some financial challenges.
In a situation like that you address the staff and make them understand the need to cut down payroll and make sure it is a temporary situation as soon an things pick up increase their pays back.
Employee welfare is important to the success of the business.

@Lilia Employee welfare is important to the success of the business. If the management explain to the staff members about the challenges currently facing the company, staff members might even come with a plan that will help reduce the financial burden on the company.

 

[Goodday]

No, l would say it's not a must to the total number of staff on the payroll in order to reduce cost. Every employee in a business has a role he or she plays to keep the business moving positively and if an employee is being asked to leave work with the reason to lower cost, there will surely be a gap in his or her specialized area of work and this can reduce productivity too.

 

[Queentener]

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?

Instead of reducing the number of employees on pay roll to reduce cost why not have a meeting with those employees and reach a compromise, whereby you reduce their pay and that will still help reduce cost, and you still have enough hands to help in production of service.

 

[Setfragil]

Staff are not sacked most times because the company wanted to reduce cost on its payroll. Sometimes, staff are relieved of their duties when their contributions to the company doesn't worth it for the company to keep them in its payroll. Staff can also be reduced if their services is no longer needed in the company.
If the company income is not as it used to be, it is necessary to look for means to cut or reduce cost one of the ways of doing that is by reducing its staff workforce.

 

[Jlife]

@Nurudeen I think that will be unfair to those who will be filling in for other vacant positions. By so doing, they will be stressed at work and their level of productivity will reduce overall. Reducing number of employees to reduce cost is never a wise decision to me.

I think this type of thing is done when a company or an organisation is experiencing failure or they are about to crash because a good organisation will never think of doing it they will rather look for a way to employ more people to handle more task
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@Nurudeen I think that will be unfair to those who will be filling in for other vacant positions. By so doing, they will be stressed at work and their level of productivity will reduce overall. Reducing number of employees to reduce cost is never a wise decision to me.

I think this type of thing is done when a company or an organisation is experiencing failure or they are about to crash because a good organisation will never think of doing it they will rather look for a way to employ more people to handle more task

 

[jagabaney]

If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee's race, gender, religion, and/or age). To be legal, a person's earnings after the pay cut must also be at least minimum wage.

 

[Robrown83]

It is.not compulsory.but necessary to reduce the.number of staffs on a payrolls in order to reduce the cost. In order for the company to fold up, I think the best option is to reduce the number of their staffs or reduce their salary .

 

[Folaham]

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?

Downsizing demoralizes surviving workforce and all what they are reminded of is insecurities to their job. They work mostly in fear and that is not good for business. You risk losing other staffs as they feel more insecure by happenings around them

 

[Kingsley]

It is not a must to reduce the total stuff in an organization, there are other ways to reduce the total cost a company is incurring rather than cutting down employees. You can reduce the cost of advertisement and the company can cut down the cost of production. There are other things like maybe reducing the salary. One can cut down the salaries of staff.
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Yes it is good to have employees that believe in you and believe in your mission and vision it will help your vision to grow faster and your mission to be accomplished in a very short space of time. As an employer you must consider all those factors when trying to hire an employee. Because if you decide to employ people that do not share the same idea with you they will end up killing your vision and destroy your mission.

 

[Sariana23]

I totally agree with you, I have not lived it but I have seen companies apply such a strategy that affects workers, both those who are fired and those who remain working, executing their functions and those of others. I think that companies should change this type of strategy where everyone benefits, and there is no need to make a layoff of employees.

 

[shalom]

It is not really necessary to retrench workers or employees all because you want to reduce cost of production. You can as well increase the total number of labour to giver a higher rate of output after production.

 

[Alexandoy]

It is called retrenchment when the company is reducing the payroll by removing some employees. That is only done when the business is on the brink of bankruptcy otherwise that is not a good indication.

 

[Dowenship]

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?

Even if the business need a strategy to reduce cost of production and operations but decreasing the number of people on payroll expense should be the last decision. Out of all strategies to reduce why should there be reducing people from payroll be even consider as an option..

 

[Shivay]

If you can bear losing your workers and still work fine then you should definitely do it as it would simultaneously reduce your cost. But , be sure before that you can Carry on your business without their help.