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

[Adecyptii]

Most employers take that attitude,anytime they can't pay all their workers,which is very bad,at least let them tell their workers and see if the worker agree to continue or leave.

 

[YERUS]

If this is done just to reduce costs, it is very wrong.
When the number of staff decreases, there would be shortage of hands, and low productivity might be the story of such organization. There should be other ways to reduce wage .

Yea.
I think there should be other ways to deal with this.
reducing the number of staff would have an adverse effect on the output.
more work will also be heaped on the remaining staff, and that's wrong.

 

[Godspower]

Most employers take that attitude,anytime they can't pay all their workers,which is very bad,at least let them tell their workers and see if the worker agree to continue or leave.

A better way might be to make salary cuts instead of outright lay-off. The entrepreneur must also kindly explain to this staffs the reasons for doing so.

 

[Joy123]

As an employer, you don't have to reduce the amount of your staffs to reduce cost, instead, you can offer them a pay cut, do job rotation, or adopt a new work flow.

 

[CeeJase]

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?

If you are having lesser people to pay salaries on monthly basis it is going to mean that you don't have too much expenses to take care of at the end of the month so naturally it is cutting the cost that you encounter in your business.

 

[eLdavis]

As an employer, you don't have to reduce the amount of your staffs to reduce cost, instead, you can offer them a pay cut, do job rotation, or adopt a new work flow.

Though I believe this is a better choice than cutting some off, but do you think all the employees would agree to a cut or decrease in salary?

 

[Shigobad2020]

You dont need to reduce the number of workers on payroll to reduce the cost of spending in your company , if the company is really doing well, you can just increase the number and amount of your produce,

 

[Syldan]

Well, to reduce the number of staff on a payroll, is a welcoming idea when there is high numbers of staff and their duty are not perform or there is low productivity, that will lead to unnecessary expenditure or unproductive activity.

 

[btaliat]

It is not a must except if the workers are too many or redundant. There are many other ways a business owner can increase the level of production without have to rescue the number of workers thay work with him. He can reduce the cost of production for instance.

 

[mayumi97]

Reducing manpower without doing a careful study of the situation can be counterproductive. While it may superficially reduce labor costs, reducing manpower may also translate to lost opportunities to earn more. It may mean paying overtime fees with premiums to get the usual production from a leaner workforce. Thus, you can end up with a bigger production cost. I would advise performing an operations audit to identify bottlenecks and inefficient operations that needlessly increase costs and time spent on the job order.

 

[Heatman]

Yes it is a must to reduce the number of staff on payroll to reduce cost, imagine the average scalar is 50,000 but you have 10 workers and you are paying them 30,000, normally if you know you can do with just 6workers and the 50,000 salary will be constant, it is advisable to just reduce the workers and increase the salaries of the remaining ones to make them happy.

It is actually a simple logic that when you are paying a higher number of staffs or workers, you will always have more expenses to cover but when you are paying less a number of workers you would definitely have your cost reduced.

 

[CeeJase]

It is not a must to reduce total number of staff on your payroll in order to cut down cost. Sometimes many staff could be to your advantage when they are all productive and hard-working but why would you keep an unproductive staff on your payroll?

If the number of staffs that you have are too much that you can't really be able to pay all of them without running into loss, it is paramount that you lay off some of them especially the ones that don't really contribute much to your business.

 

[Smiles20]

It is very possible that you can save the business without having to sack some employees in order to save cost. You can consider other options like stopping irrelevant projects.

 

[Godspower]

You dont need to reduce the number of workers on payroll to reduce the cost of spending in your company , if the company is really doing well, you can just increase the number and amount of your produce,

This is true. You can decide to reduce other overhead costs instead of retrenching workers in your organization. Better still, you can decide to reduce salaries instead of sacking workers outrightly.

 

[Lucy ID]

It's ok as long as their services are not needed, neither will their absence will not affect the business or their position will be carried out by another department. All in all as long it's affect the growth or success output of the business you can you reduce cost

 

[Psalmseen]

The number of staffs may be reduced to cut the cost incurred by a company. And this all depends on the kind of financial situation of the business. It might not be necessary for a business to retrench some workers, it might just require some other strategy

 

[Koldej]

To reduce cost, this might not be the only option, another option option may be cutting down salaries of workers, but in all sense I think it's more better to allow some people go as cutting down salaries may reduce to efficiency of some workers

 

[kayode10]

You don't have to reduce the working first before you reduce the cost of production in the company. You can you possible other things that I'm taking away extra cash from the business and you reduce them

 

[Ebro01]

Normally cutting cost should be a priority of any company, private, public or individuals that want to be progressive in life. It's better to reduce your staffs since there is reduction in productivity.

 

[Heatman]

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

Instead of having a lot of workers who are not doing much for your business it is very important to cut them off and cut down the number of expenses that you are getting into as a result of paying them salaries.