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

[Setho]

Whenever a business is experiencing loss, it is only proper that they try to cut costs. This costs I am talking about can come from high unimportant projects the company plans to embark on or on events and platforms they do not need. Cutting pay roll should be the lat resort for any business.

 

[Samuel77]

It is not the most for you to reduce total number of stuff on your payroll to reduce cost, but I also see reducing total number of staff on your payroll as a good idea to reduce cost

 

[Prettyjanie]

I don't think it is a must lay off some staff under the guise that your company wants to cut down on cost. There are other ways to cut down on cost without necessarily getting some people unemployed. I think employers should really cut down on this excuse.

 

[Grant]

It doesn't necessarily mean you need to let employees go. Consider looking at your other expenses and start going to work on cutting as many costs as you can before laying anyone off. If you must lay anyone off, make sure to let them know in due time. Don't make them wait.

 

[Setfragil]

It's not totally a must to reduce the numbers of staff to save cost in the company but we can not rule out the facts that having a lot of personnel can be a cancer to the company finance. What we can do is to balance the expenditures and the staff salary to determine if it's necessary to lay off staff to save cost.

 

[Jumoke12]

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 that will be the best option which will save the company from collapse, though it will render many people jobless, I think it is still advisable to follow that since that's the best option

 

[Ehizzy1]

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 staff would reduce the passion he have for the business and that's the problem ,so reducing the amount of staff would aid all these

 

[abubakar3141]

Businesses reduce staff to cut costs and align their employee numbers with the amount of work that's available. There are two main ways to reduce staff: permanent layoffs and temporary layoffs. In a permanent layoff, a small business usually targets a certain group, such as poor performers, the newly hired or those earning the most money.

 

[Abbeyola]

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?

Yes, to some extent it is a must to reduce staff, in other for smooth and effective operation, especially where the total turn over is very low.

 

[Muhammad Arslan]

For leaders, their businesses, and their staff, 2020 has been a difficult year. When we asked 600 CEOs what keeps them up at night during this global pandemic earlier this year, many of them cited the need to cut expenses, including payroll costs, in response to drastic sales losses. One CEO shared, "I went from 260 workers to 38 in 10 days." “It was necessary to make decisions quickly. It was a moving experience.

 

[Dora Wi]

Unfortunately businesses sometimes have to reduce the number of workers, or alternatively reduce the wages to cut costs. This is especially an issue nowadays with the pandemic. But before you start to look at the employees, you should check if there are other expenses that could be reduced. For example, businesses that have switched to remote work can sometimes afford to stop renting offices.

 

[Setfragil]

At some points in business if the business is no longer doing good you can reduce the numbers of people to save costs of production. Before you could actually reduce your staff you need to know if relieving them of their duties will really save costs.

 

[Kingsley]

It is not a must to layoff stuffs in other to reduce cost of running the organization. One can rather look for other ways of reducing cost Rather than layoff staffs because this affect the business adversely. So it Better to reduce salary.

 

[btaliat]

Low in productivity is not a function of more workers. There are other factors which business owners can consider rather than reducing the workers on payrolls in order to increase their excess capital.

 

[Chibson]

When a company is facing financial crisis, it's important and essential for them to reduce the cost of running the business. But the down side is that many workers lose their jobs.

 

[Erik4150]

I don't think it is necessary to do that but sometimes you have to. For instance during economic crisis and you are not making enough profits, you can cut cost by laying off some of your staff.

 

[GIFTMICHAEL]

I'll prefer the business owners to do reduction of payment if staffs and other employees than going on redundancy. It will leave others frustrated and suffer unemployment for long time.

 

[Ziki]

The goals of every business is to make profit. This is the reason why business drop some of their staff when you business is not going smoothly.

Post automatically merged: Apr 30, 2021

When a business is no longer generating the amount of revenue it was generating, then there's nothing wrong in reducing the number of staff on payroll

 

[Hopey]

For a firm, it is best interest to only employ the number of staff that is needed in thee firm for the smooth running of the business excess can be an extra exppenses

 

[Ayokex]

This might not be the only solution. You have to be sure the working environment is conducive enough for them. You have to equally be sure that the working equipments or tools are of good qualities and in good conditions to aid their work before taking the step.

This method is called downsizing in business. It is not something to be done without a genuine reason. Some situation in business may warrant that the number of employees be reduced but this has to be done with wisdom.