> It’s the same reason that it’s virtually unheard of to cut salary, even when revenue is collapsing in a deflationary recession
Yes, that’s why companies prefer lay offs rather than broad base salary cuts. Lay offs are a temporary hit to morale, while pay cuts are more permanent. Moreover, in lay offs, you can fire least productive workers, while after pay cut, it’s the most productive that will leave first.
I've seen more jobs offer like 10% yearly bonuses for the reason that I assume is the ability to cut back on costs in a pinch without touching the salary itself per se.
> I assume is the ability to cut back on costs in a pinch without touching the salary itself per se.
A pay increase is a > 10 year commitment, in the eyes of the accounting department. Where I am, it's usually around 60% base cash bonus, %30 base RSU bonus, for "above average" performance (which isn't difficult). I, unlike most of my colleagues, budget my life around my base pay. I experienced the 2007 recession, so in my mind, this is all unsustainable and will crash someday.
After a few demoralizing layoffs you have a tendency for talented folks to leave once the picture is clear. Does management think software is an investment or a cost? If you can work where it is an investment, do so.
> After a few demoralizing layoffs you have a tendency for talented folks to leave once the picture is clear
From what I've experienced, there's a double whammy here. Only the talented folks remain, but they all know better than to stick around, so the company dies shortly after.
Yes, that's why companies don't like to fire people in general. Alas, sometimes the choice is between firing people, taking morale hit and likely dying later, or not firing anyone, and dying much sooner and with certainty.
Yes, that’s why companies prefer lay offs rather than broad base salary cuts. Lay offs are a temporary hit to morale, while pay cuts are more permanent. Moreover, in lay offs, you can fire least productive workers, while after pay cut, it’s the most productive that will leave first.