Unpaid Furlough or Layoff?
Add comment April 13th, 2009
Amid the steep job losses, some managers and advisers are touting alternatives to layoffs, including furloughs, pay cuts and reduced workweeks. Some economists say these alternatives slow the recession’s downward spiral by preserving jobs, albeit at lower wages.
Workplace experts cite these benefits and drawbacks of temporary, unpaid furloughs, compared with layoffs:
Pros:
Reduce labor costs quickly
Help keep highly skilled workers
Avoid rehiring and retraining
Cons:
Can drive away top performers
Prolong cost-cutting
Drain long-term morale
Source: WSJ research
Here is the rest of the story…. Choice?
