Pay cuts

GLC

We are in the process of restructuring some positions and the salary of some staff is currently too high for what they will be doing. I wanted to know from some others how much would you think a salary should be cut for it to be worth causing the disruption of these staff, $1,000, $5,000, etc. They are currently about $5,000 too high with the new structure of their position. Is it worth it given they might leave and all the turnover costs associated when someone leaves. We are coming up on annual increases. What about not giving these employees any raise for this year instead of cutting their salary?

Leslie

We "red-line" - meaning not only would they not get an increase this year, there will not be one until the job is restructured with more responsibility OR there is a massive change it what the job is worth on the open market.

hrbanker

We red-line, too. If they are transferred at management's discretion to different duties, we pay them their old rate. However we reserve the right to pay them at the new rate if they are transferred for disciplinary reasons, budgetary reasons, or at their own request.

ray a

This must be done carefully if you want to keep the employees. We have a wage index with a minimum, midpoint and maximum. If an employee is demoted and they are within the index for their new position, they get to keep their current salary, but their next increase will probably be pushed out about 18 months and be minimal. If they are earning more than the maximum for their new position, we will reduce their salary to the new max, then push out their next increase about 18 months.