Friday, January 9, 2009

Want to Show Leadership in a Tough Economy? Don’t take a raise.

It doesn't matter if you’re doing a good job or if you try hard—I assume that. If your company is in trouble and contemplating a lay-off or cutbacks, why give raises to the highest paid people in the company? Do the math. If the top 20% of a company do not get a raise, that may equate to “saving” numerous employee jobs.

Few corporations take a position like this. They usually continue rewarding the top people (and everyone else) as if nothing has changed in the economy. Or they end up laying-off white collar and blue collar workers in droves. Quite often, they end up doing both, in that order.

Again, this has nothing to do with the executives’ performance, just as laying off workers usually has nothing to do with their performance. It’s an opportunity to show leadership and save jobs.

No comments:

Post a Comment