Alternatives to Layoffs

Rob Nance, Publisher

By Rob Nance, Publisher - I suspect that most business people admire Fred Smith of Federal Express for what he built. Talk about going out on a limb 35 years ago! I think even more highly of him right now for the position that Federal Express has taken, considering their significant slide in revenues due to economic conditions. Instead of taking the common path of simply laying off (eliminating) workers, Federal Express rolled out a pay cut program to all 36,000 employees. It’s better to have a job at a lower wage than no job these days, that’s for sure. Salaried workers got a 5 percent slice; senior executives were in the 7.5-10 percent range; Smith’s pay cut was 20 percent. Sure, Fred probably doesn’t have to worry about paying his mortgage, but still, that’s taking the high road in this time of distress.

I admire executives who try to find other ways to keep good workers on the payrolls. Job eliminations are the easy way out. The easiest way is not always the best way.

Now, I think I’ll watch "Cast Away" this weekend. Wilson? Wiiillllsssssssooonnnnnn!!!