Gyro
15-07-2013, 01:39 PM
Hi All,
A bit of background on the company before I move on to the point. We are a Junior explorer and facing some major challenges with the project currently and the in the foreseen future. We have Senior leaders in the organisation that are paid very high Remuneration Packages. There are legacy issues to be mindful of as the previous CEO aligned these salaries to operating organisations within the 75th percentile of the industry in which we work. A smart move at the time as the project was full steam ahead as this did give us a very competitive advantage not to mention how exciting the project is. We have some very good technical people in the organisation too.
We are undergoing a review of each role in the org to see if we can let go of some staff while we work out where to go from here, the other option I am looking into is...
..................................
How difficult would it be to impose a % pay cut to the most senior positions in the organisation until the project is more certain? We are trying to implement performance based incentives however proving difficult when you don't know if you have a project. I do recall during the GFC the organisation i worked with previously did try to implement this across the board but they weren't successful and I do know of other organisations that did implement salary cuts but I am unsure how they succeeded. I know changes need to be through a consultative process however it's not too likely that an employee would volunteer or be happy with a salary cut under most circumstances it doesn't matter the financial position the organisation is in.
I have been looking into cutting back hours to part time if all too risky as there is still work to be done.
Anyway does anyone out there have any tips on this?
I look forward to a response
A bit of background on the company before I move on to the point. We are a Junior explorer and facing some major challenges with the project currently and the in the foreseen future. We have Senior leaders in the organisation that are paid very high Remuneration Packages. There are legacy issues to be mindful of as the previous CEO aligned these salaries to operating organisations within the 75th percentile of the industry in which we work. A smart move at the time as the project was full steam ahead as this did give us a very competitive advantage not to mention how exciting the project is. We have some very good technical people in the organisation too.
We are undergoing a review of each role in the org to see if we can let go of some staff while we work out where to go from here, the other option I am looking into is...
..................................
How difficult would it be to impose a % pay cut to the most senior positions in the organisation until the project is more certain? We are trying to implement performance based incentives however proving difficult when you don't know if you have a project. I do recall during the GFC the organisation i worked with previously did try to implement this across the board but they weren't successful and I do know of other organisations that did implement salary cuts but I am unsure how they succeeded. I know changes need to be through a consultative process however it's not too likely that an employee would volunteer or be happy with a salary cut under most circumstances it doesn't matter the financial position the organisation is in.
I have been looking into cutting back hours to part time if all too risky as there is still work to be done.
Anyway does anyone out there have any tips on this?
I look forward to a response