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

[Mikomataracy]

It is not a must to reduce the staff in other to reduce cost but ,the company can just try to reduce all the unnecessary expenses incurred during production or services rendered.
If the company has so staffs that is not contributing to the growth of the company or business the company may reduce those one.

 

[maventiger]

Even if the business need a strategy to reduce cost of production and operations but decreasing the number of people on payroll expense should be the last decision. Out of all strategies to reduce why should there be reducing people from payroll be even consider as an option..

Very true @Dowenship, but it has become the norm of most startups and some Top companies. This dirty strategy is always followed by employment of staff with less take home offer. With some level of confident in finding a new staff that cost less and be as productive.

 

[BrolySSJ]

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 that at times the business may feel that is is necessary to do so in order to ensure that the company is able to survive and therefore they have to make these hard decisions. And whilst I do agree that it does put a lot more pressure on the existing staff, the important part is to cut the payroll where jobs are redundant and therefore it won't affect the other employees as well.

 

[GoldenLady]

It's not wrong to layoff workers, but it better to make sure it's absolutely necessary first. If the business can afford to retain but pay lower than previous sums, a lot of workers will prefer it to being laid off.

 

[tyrim88]

For most company it would be very neccssary for them to look into reducing overhead to save cost,if that does'nt work,pay cut might be the best option and the employees need to concent to that.Then the last should be layoff.

 

[Heatman]

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?

To some extent, it's required in order to cut the company's business expenses especially when they are in some sort of financial crisis that would not allow them to keep all of their employees under payroll. Some staff have to be laid off and even some salaries slashed with a prior notice to all the staff.

 

[Felixko]

Not really that important to reduce those who are already on payroll other wise one mind end up removing the staff who work most in the company . I think it will be advice able to reduce the amount you pau your staff in other to reduce cost in the payment of work staffs .

 

[Chris Jo]

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?

Reducing payroll expenses in a bid to reduce cost is not really a solution to cutting cost in an establishment. Instead it causes a lot of problem and reduces motivation and efficiency of employees. The business suffers as a result. I think the best solution is reduction of employees...

 

[Heatman]

Reducing payroll expenses in a bid to reduce cost is not really a solution to cutting cost in an establishment. Instead it causes a lot of problem and reduces motivation and efficiency of employees. The business suffers as a result. I think the best solution is reduction of employees...

Seriously, you have made a very valid point when it comes to cutting down employees salaries. It affects them in a very negative way in such manner that they would lack the zeal to work like they use to do in the past and it will tell immediately in their work productivity.

 

[maventiger]

Reducing payroll expenses in a bid to reduce cost is not really a solution to cutting cost in an establishment. Instead it causes a lot of problem and reduces motivation and efficiency of employees. The business suffers as a result. I think the best solution is reduction of employees...

@Chris Jo I agree with you on this. Most employers of labour get quick result without looking at the implication on the company's output and productivity. Reducing number of employees is a dirty strategy used by companies but I really don't see it as a solution.

 

[mubinadaddy]

I don't think that is a must for you to reduce the number of your staff in order to reduce the payroll cost but if your employee are not much active and not productive then you can choose that as an alternative in cutting down the expenses and also the payroll system in the aspect it will help the management the organisation to be able to be paying the employee salary regularly.

 

[Adventurer]

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?

It is not a must, but may become necessary when the company is running at a loss, when situation occurs speak to the staff and let them know it's a temporary situation. Although in my opinion I don't like this approach at as it demoralises staff

 

[Josemendez]

Reducing the number of workers will help reduce the amount paid out ,however it will affect the business to an extent . In certain situations , it is better to reduce the pay . But in extreme situations , reducing the number of workers will be the best

 

[Ayokex]

Reduction of staff in an organization is called downsizing. Many companies engage in it to reduce cost, while many do it to get fresh workforces. Whatever the reason for downsizing in an organization it will definitely be for the development of the organization. For an organization to decide on laying of some of it's workforce without issue from the part of the employees, i think it's a serious matter for the organization.

 

[Billy]

Reducing the staff, should not be the first choice. You should consider discussing pay cuts. That way the pain will be spread to all of them. And when the situation is better, they will all be happy to have shared the tough times.

 

[Nomad]

If a virtual assistant can do your job, why should you hire a worker who has to walk to your office every day. If a part timer can work, why should you hire a full timer. For may businesses, over staffing is a major issue.

 

[Simpley]

To reduce labor costs does not mean that companies reduce the number of existing workers. It is better if you make improvements to the placement of machines and equipment so that they can work effectively. In addition, fixing the workspace so that the workforce is more comfortable and productive. all of these things will have an impact on production costs.

 

[Victor72]

I don't think it is a must for you to reduce the total number of staff on the payroll to reduce cost, there are other ways to reduce costs in a business or an organisation, all you have to do is to check your expenses

 

[Justin]

If your business has a higher running cost, you need to cut your workforce so that your expenses will decrease. If you reduce payroll, your workers might start abandoning your organization.

 

[Trexxxy]

I think several businesses employ different methods to cut down costs just like you have highlighted most of them result in cutting down the numbers of employees to free budget and all of that. However, I think every business should have a plan to mitigate financial challenges.