Dawn Dugan specializes in writing books, articles, white papers, reports and special communications for the human resources industry. She is the co-author of Effective Executive Compensation, which was published by AMACOM in 2008. Read more...
Sometimes it's better to be paid less, than not at all.
According to a study done by human resources consultants Hewitt Associates, 16 percent of large organizations have trimmed base salary during this recession. FedEx, The New York Times, and Hewlett Packard are just a few American companies that have chosen pay cut reductions over layoffs. Even in the lucrative entertainment industry, Jay Leno agreed to a 50 percent pay cut to accommodate budget cuts at The Tonight Show.
Pay cuts aren’t ideal, but many see them as the lesser evil during tough times when organizations are faced with the choice of reducing wages, or letting employees go.