Search
 

Pay cuts shouldn’t be rash decision

As economic uncertainty continues, many employers are still looking for ways to cut costs. Labor is a large cost, of course, but employers should not move forward with pay cuts without great research and consideration.

By Amanda McGrory-Dixon | Updated on March 29, 2013

As economic uncertainty continues, many employers are still looking for ways to cut costs. Labor is a large cost, of course, but employers should not move forward with pay cuts without great research and consideration, says Ken Oehler, global engagement practice leader at Aon Hewitt, a human resources consulting and outsourcing firm in Chicago.

According to research by Aon Hewitt, pay is the No. 3 driver of engagement globally. Many employees have already experienced their share of bad employment news, such as layoffs, furloughs, benefit reductions, and pay cuts and freezes, Oehler says. Going through another round could destroy engagement and cause employees to start looking for other opportunities.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.