An Innovative Approach in a Down Economy (12/21/09)

The surprising results that occurred when one company set a profit goal and promised to rescind pay cuts if that profit level was reached.

A few weeks ago, I heard a story on NPR that has since stuck with me. In these tough economic times when many companies are instituting pay cuts, furloughs, layoffs or pay freezes, some companies are taking a creative approach and retaining workers.

UltraSource, a ceramic microchip manufacturer based in New Hampshire, had to lay off 30 workers and cut pay for the workers who stayed. However, he did this with an end goal in mind. A profit goal was set, and the company promised to rescind pay cuts if that profit level was reached; it was reached in less than a month.

What’s your company doing to retain workers in the era of layoffs and pay cuts? Leave a comment below.

Teresa McPherson was the former Editor of Adhesives & Sealants Industry. She has held several editorial positions during her more than 20 years with BNP Media. She holds a bachelor’s degree in English and journalism from Eastern Michigan University.