Should employers cut pay or slash jobs in an economic downturn?

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  • Companies often face a tough decision in an economic downturn: should they cut pay, or slash jobs? New research says the later is the best choice.

Should employers cut pay or slash jobs in an economic downturn?

Companies typically face two options for cutting costs in a downturn: cut pay or slash jobs.

New research from Nathan Seegert and Jason Sandvik here at the David Eccles School of Business, along with their coauthors, shows that lowering headcount is definitely the way to go. Slashing pay tends to lead to top performers vacating their jobs anyway — for the competition. Read more about their findings in Forbes.

2018-06-12T16:52:30-06:00June 12th, 2018|

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