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

[Spicywilfred]

What the company should do is not laying off staff in order to reduce payroll cost but rather they should work more in their production and services the only reason they should lay of staff is when they not contribute their own quota to the growth of the company or establishment.

 

[Bookwormlux1]

I do not support this move in business at all. Things like this would lead to decreased customer satisfaction because the workload is already too much for the few staff available.

 

[Chibson]

When a company cannot afford to pay a lot of employees it is very necessary that they reduce the number of employees. This is very necessary for the company not to run into financial crisis.

 

[Kunkun]

True you are right, decreasing the cost of payment to workers can indeed have an effect on quality because for one motivation to work and do well could have been tampered with, I think in such cases a loan could also be an option for investment other than cutting down on payment

 

[Kelly5]

It is not a must to reduce the number of staffs in a pay roll of am organization or business. But this forms one of the basic essence of downsizing in a buisness. The essence is to reduce overhead costs in running the business profitably

 

[Patrik]

you will reduce costs for sure but you are putting your business on a lot of risk since those workers could be very important for the business and losing them isn't what you want

 

[Sheyemanu]

Well, in reply to the question in your above post concerning if it is s must to reduce the number of employees in your workplace to reduce cost, I personally am of the opinion thay it isn't a must to trim down your workers as there are other ways

 

[Billy]

To reduce cost on payroll you have to reduce the amount of staff you have
But mind you if you reduce an employees definitely your productivity will reduce, so you have to think wisely.

I like your thinking. Yes, it is a win-loose situation. When your productivity suffers, the entire business will suffer. This is a very tricky situation. It is a catch 22 situation. Where one has to suffer in order to save the rest!

 

[joy101]

I don't think is a must to reduce member of your staff it depends on the company if actually the company is not moving as plan, you can reduce base on income.

 

[Alexandoy]

Well, in reply to the question in your above post concerning if it is s must to reduce the number of employees in your workplace to reduce cost, I personally am of the opinion thay it isn't a must to trim down your workers as there are other ways

Reducing the number of workers will directly affect the production. The cost is reduced but the revenue may also be reduced due to the effect of fewer workers. The reduction of staff is a last ditch effort for the business to survive. There are many cost-cutting measures that can be implemented like the saving on electricity and utilities and selling unused assets.

 

[Senator]

Your thread headline has simply said it all already. You simply reduce the number of staff to reduce cost on your business. If the number of staff are bearing too much on your business, it is simply the wise thing to do

 

[Kayzzy3]

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?

I Think it is a necessary step in cutting cost is any organization that have observed that overhead is causing a financial haemorrhage, it such step is not taking and the the financial stance of the company takes a major, it will affect every eventually.

The wise thing to do is to check for redundancy, by looking at using Less hands to complete a particular task, the company will know who to lay off.

 

[Eodine]

To reduce cost on payroll you have to reduce the amount of staff you have
But mind you if you reduce an employees definitely your productivity will reduce, so you have to think wisely.

There are other methods of cutting cost without having to remove an employee, you can cut the running expenses of some departments, reduce wages etc so it's best to find the option that works best for you.

 

[Chibson]

Sometimes it is necessary to reduce the number of staffs in order to be able to run the business effectively and smoothly. This may happen in terms of financial problems or crisis.

 

[Fozzy_boy]

I

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?

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?

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

I think there are so many things to consider before reducing the number of staff on payroll to reduce cost.Sometimes it might work and sometimes it might not

 

[Setfragil]

If you want to reduce cost with shorting or sacking some of your workers you need to put into consideration that this action can bring down your production and you also need to check if the retained workers can do d entire work of the company

I'm in total support of your point. You cannot just go about sacking your staff without determining if their sacking will reduce the company's production cost. There might be some other things other than the staff that are eating up the company's funds.

 

[Kelly5]

If whatever is causing the increase in the cost if running the business successfully has been identified as too much staff in the payroll system, then yes it is very okay and also compulsory to reduce the staff

 

[Pousinha]

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?

This became a regular habit in my former country, where the longlife lasting offline job doesn't exist any more. But in the case of little and medium sized companies, the point is they actually cannot pay employees due to an unfair tax system burden. Entrepreneurs are forced to pay 70% of income to taxes (and lot of times, their income is not the real income: there is a presumption of income stated by tax laws, based on the kind of activity). In the case of big sized companies, I'm doubtful if there is the real need to reduce the number of staff members in order to not go to failure. In the case of multinational enterprises, it could be really a mistake, especially when the matter is not an unfair tax burden like in my former country.

To reduce cost on payroll you have to reduce the amount of staff you have
But mind you if you reduce an employees definitely your productivity will reduce, so you have to think wisely.

The point is companies won't reduce productivity, as in my former country some owners force the remaining employees to work in a slavery scheme. Otherwise, the quality of the service pays the piper.

 

[Chibson]

Sometimes, it's necessary for a company to reduce the number of employees in order to save cost. It often happens during crisis like Covid19 pandemic.

 

[GIFTMICHAEL]

It isn't a must at all, it is a wish, we can decide not to slash the workers earnings or reduce the number of employees we have in a given company. Everything depends on the company's budget, if it can carry or not.