zlacker

Let's say you are working for a for-profit company that operates like you describe, and the business hits a rough patch. The owners tell you that the only way to prevent layoffs would be for everyone to agree to a 20% pay cut, and they back it up with hard data.

Knowing you could get paid more elsewhere, would you accept the pay cut to prevent layoffs or would you leave?

I'm not ashamed to say that I would probably leave. Loyalty shouldn't be expected on either side, and that's ok.

>>kevins+(OP)
If the company didn't have operational reserves for that kind of rough patch I'd be pretty worried anyway - but I'd probably consider it, yeah. A lot of that would depend on my situation at the time though - if it meant defaulting on my mortgage, then no, it's not happening. I agree it's perfectly fine to make a choice like that.

I agree, it's not reasonable to expect loyalty in either direction. I think the key for employers is to remove as many reasons for leaving as possible; then who cares if employees stay out of loyalty or out of logic, they're still staying.

edit: typo

>>kevins+(OP)
I worked for a small company with 20ish employees during the post 2000 tech downturn. There were a number of layoffs and I got a 25% haircut and was happy to remain. It was a struggle for us financially but not a catastrophe. Eventually (3 years on) the job market got better and I got a position at a different company that took my pay beyond what it had been. I have no regrets and no hard feelings. I can envision returning to that company some day in the future as the environment was interesting and challenging.

>>kevins+(OP)
This happened to me in my 2nd job, a long time ago. Customer went tits up owing us £150k, we were only a small firm, around 10 employees so would have meant significant layoffs.

So the owner asked if we'd all take 20% or so paycuts, with some of the older/better paid staff and the owner himself taking bigger cuts. As the business was otherwise profitable (being in a pretty niche market) we all agreed. Something like 9months later we all got paid back with interest and a bonus.

Smaller scale, and a bit more recently at a different (also small) place, all the non-management staff offerred to forego the (expensive) christmas party so one of the contractors could get paid back pay they were owed due to problems with a difficult client.

It's obviously very situational, but in both cases it felt like the right thing to do and both places were smallish firms where loyalty and morale etc. at the time, were high.

>>kevins+(OP)
I worked for a company and saw the writing on the wall that tough times were ahead. Realizing this I left, hoping to give more time to my coworkers before cuts were instituted. A few months after leaving, the company had to cut everyone's salary by 20%. They were kind enough that they went from being expected to work 5 eight hour days down to expected to work 4 eight hour days.

>>kevins+(OP)
A bonus based compensation system converts payroll from a fixed to a floating cost.