Furloughs: The best cut for employee morale?
While layoffs or salary freezes are still commonplace, more companies are turning to furloughs.
A recent Hay Group study found that 35% of companies have either:
- used furlough as a cost-cutting option during the recession, or
- have a furlough policy in place.
In addition, 50% of the companies using furloughs anticipate continuing to do so for 6-12 months.
The study also found furloughs have a minimal effect on employee morale. Example: On a scale of 1-10, companies that implemented the programs reported a score of 4.9 in terms of its effect on employee morale. That score equates to a “neutral” effect.
If you are considering implementing a furlough as a cost-cutting tactic, it’s important to be aware of potential legal snares.
- Share on
Free Training & Resources
Webinars
Provided by SkyStem
Further Reading
Now that you have a feel for what positions at your firm should be hybrid, you might be considering giving employees the ultimate work sche...
Don’t you hate the regret that sinks in after you make a poor decision? That feeling is exactly why finance leaders want to be better...
“I can’t wait to sit in another hour-long meeting!” — said No One. Ever. It’s bad if an employee dreads it. It’s wor...
In a matter of months, companies will possess first-ever guidelines for environmental credit accounting. Public and private firms will be r...
No matter how hard you try, sometimes you and your finance team fail. We make mistakes. We miss deadlines. We fall short. In fact, a...
Some people naturally want confrontation. It’s just how they roll. And most leaders want to avoid confrontation — especially in ...
