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Asking staff to tak...
 

[Closed] Asking staff to take a pay cut

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What does your business or the staff gain by they being there?

Never underestimate the value of free loo roll.....


 
Posted : 22/08/2017 4:12 pm
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Surely you can reduce their salary by the cost of a train ticket - they'd be no worse off financially but have more spare time? I'd take your arm off for that.


 
Posted : 22/08/2017 4:35 pm
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As someone who worked from home for 10 years, you can't underestimate the value of colocating a team that needs to interact with each other on a daily basis.

I don't dispute that at all. I'm just questioning the default.

Often the default for a lot of companies is simply because that's what they've always done. Rather than looking at what they're trying to achieve and finding the best way of doing that.


 
Posted : 22/08/2017 4:42 pm
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Reducing salary would affect pension contributions and mortgage eligibility. So for some, having the cash, even if it goes out, is more important.


 
Posted : 22/08/2017 4:43 pm
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I took a pay cut to move. But gained in that a 90mins each way commute, in traffic, became a 10minute walk.

Have you shown them a "here are our costs now vs a costs in Leeds +cost to move" throw in a %dip in profits if significant.

Or just tell em if they wanna work in Leeds then there's plenty of jobs in Leeds, here's your letter of recommendation. (strangely education seems to work along the lines of "you're looking? Ah well see ya" no real push at retention.


 
Posted : 22/08/2017 4:44 pm
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Can you not have an open forum with the staff. Tell them you're seriously considering their request, but here are the considerations. Explain that the business will struggle to cover the additional expense in leasing costs and the considerable relocation costs. Is being located closer to home worth money to them?
You sound like you have a good relationship with your people, some honest communication might go a long way.
Or it could all backfire and they quit en masse, but you takes your chances 😉


 
Posted : 22/08/2017 4:57 pm
 kcal
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of course if there's a split in sentiment, it could all end in tears. democracy in employment - could be a fraught path to take...


 
Posted : 22/08/2017 5:04 pm
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They are saving commuting costs and also gaining more free time, so better quality of life, so an adjustment in pay is completely feasible.

Surely you can reduce their salary by the cost of a train ticket - they'd be no worse off financially but have more spare time? I'd take your arm off for that.

Yes it is fair, but I'd be amazed if the majority don't balk at a salary decrease, despite what they are getting back. You might be lucky with a few, but most will want to have their cake and eat it, and will expect 'the business' to absorb the costs of moving. The reaction will also depend on what sort of money the staff are on. Are we talking comfortably well paid, or national average wage?

No doubt some will argue that you don't pay them extra to commute currently, so why should they loose out. Now, I am quite aware that makes no sense, but you can bet some will start to see it that way it you tell them salaries are being cut.

Will be interesting to know what the staff reaction is when you do suggest it.


 
Posted : 22/08/2017 5:13 pm
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PeterPoddy - Member

Move to Sheffield and give Mrs PP a job! She was doing the jobs of about 6 people anyway, so you could save a ton of cash!

Seriously though, if anyone knows of any business analyst, PA or general organisational jobs going in Sheffield, please let me know. She's brilliant. Honest.

He's spot on She is a gem, I've only met her once but you can tell these things.

And to put up with you all these years she must have the patience of a saint!

Honestly I can't think of anyone I've met of here that wouldn't be an asset to almost any company. Though I haven't met some of the usual suspects 😉


 
Posted : 22/08/2017 6:41 pm
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Six of them? All coming in from Leeds eh?

Lease them a people carrier/crew cab van - they can take turns driving it and picking each other up and filling up the tank

Lease cost could well be less be less than an annual pay rise for all six of them


 
Posted : 22/08/2017 6:42 pm
 Del
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No doubt some will argue that you don't pay them extra to commute currently, so why should they loose out.

TBF, they're ( apparently ) being paid more than equivalent work in leeds, so they [i]are[/i] being paid to commute.
looking for a job, seeing the headline rate, then the reality of the commute sets in, and 'wouldn't it be nice if...'


 
Posted : 22/08/2017 7:49 pm
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You employ six people from Leeds, you Sir are a true hero !

The last bloke I worked with from Leeds could piss 30feet in the air and had never ever spilt a pint.


 
Posted : 22/08/2017 7:55 pm
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could piss 30feet in the air and had never ever spilt a pint

Skills for life.

I'd aspire to that, personally.

🙂


 
Posted : 22/08/2017 9:49 pm
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I live in Boroughbridge & am looking for a job.

(making tea, picking up cakes/sandwiches, driving, sweeping up & generally helping out)

Email in profile.


 
Posted : 22/08/2017 10:17 pm
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Well I live in Harrogate and will happily work in Harrogate as well, employ me!


 
Posted : 22/08/2017 10:39 pm
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Are you a shit-hot front-end web developer? If you are then let me know!


 
Posted : 24/08/2017 1:04 pm
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People don't like a pay cut, even if they ended up saving money on their commute.

As others have said, allowing them to work from home more regularly would be a good middle ground. If you do decide to move to Leeds then do it for long term reasons, not just for some members of staff who may not be there for very long.


 
Posted : 24/08/2017 1:40 pm
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But replacement members of staff are also much more likely to be in Leeds which is why the move does make sense for us as employers too.


 
Posted : 24/08/2017 2:23 pm
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If they accepted a salary cut to their top line equal to the cost of their season ticket then they should be better off financially in the immediate term (due to season ticket being bought [i]after[/i] Tax/NI deductions).


 
Posted : 24/08/2017 7:39 pm
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I don't quite understand how this is supposed to work, but Leeds Uni is building Nexus, which I seem to think is partly to house technology companies. Not ready till 2018 [url= https://campusdevelopments.leeds.ac.uk/portfolio-item/nexus/ ]but might be worth a look. [/url]

Instead of Leeds center, what about some of the new developments around Kirkstall Forge. Might not be as expensive and cut your staff's commuting costs and time.


 
Posted : 24/08/2017 10:46 pm
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