User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


32° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Snow and blowing snow likely in NE KELOLAND, click here for details.

 

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Find local businesses
on the KELO Pages!

 

Cut Pay Or Jobs

February 26, 2009, 5:52 PM by Don Jorgensen

Cut Pay Or Jobs

Recently, we've seen companies cut salaries to save jobs and stay afloat.  While some employees are willing to make that sacrifice to keep their jobs, one economist says that might not be the best option.
 

Avera McKennan announced this week it's reducing most salaries as a way to avoid any layoffs. Conversely, Hutchinson Technology laid off all of its employees and shut down the Sioux Falls plant. But how does a company make those tough decisions? 

"If you're trying to retain skilled employees because you think the future is going to be profitable and viable in the future, you'd make the decision to try and retain as many of those skilled employees as possible," Augustana College economics professor Reynold Nesiba said. 

Reducing pay is one way to do that. But Nesiba says the company has to pay close attention to company morale. 

"If you can really convince your workforce that we're all in this together, you can figure out a way to pass on those pay cuts and still make people feel they are really valued and that you really need them and that things will be better in the future," Nesiba said. 

But Nesiba says what's good for the company isn't always best for the employee. 

"If you have to take a pay cut of five or 10 percent, you might not be able to make that mortgage payment or car payment. In essence, you'll have to end up leaving your job anyway to pay the bills," Nesiba said.

But before you walk away, Nesiba says consider the company and working atmosphere. 

"If the firm is going to be making money in two or three years and be viable, is it a really good fit? Do you like the management, do you like your co-workers? So it's not just a financial decision, it's also an emotional decision," Nesiba said.

Previous Story

Next Story




 
Find Local Businesses on KELO Pages!

You may also like

Four Dead In Sisseton Shooting

11/22/2014 7:09 AM

South Dakota authorities are searching for a Sisseton man following a shooting early Saturday morning that left four people dead and another person in...

Full Story
UPDATE: Sisseton Homicide Suspect Found Dead In Home

11/22/2014 10:40 AM

Colter Richard Arbach has been located and identified as one of the four people shot and killed this morning in Sisseston.

Full Story
New Charges Filed Against Faith Rasmussen

11/19/2014 4:59 PM

She's already admitted to running a large marijuana ring, now Faith Rasmussen is accused of arranging a deadly robbery.

Full Story
Sisseton In Shock After Shooting

11/22/2014 5:51 PM

It appears a Sisseton man killed three people and injured a fourth before killing himself early Saturday morning, according to the South Dakota A...

Full Story | Watch
Names Of Sisseton Shooting Victims Released

11/24/2014 10:32 AM

Authorities release the names of the people shot to death and hurt in Sisseton over the weekend.

Full Story


Events