Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What does this signal? They are claiming cost savings. How so?
Since you work in the legal profession, think of billable hours.
Owners of the company will assess billable hours versus salaries and overhead in downtimes. Think of it as somebody who has a lot of $ in the stock market checking every day to see how much they're losing.
So, when owners see the hemorrhaging, the steps work like this...
1) Request PTO be taken instead of administrative/overhead hours. PTO is part of your salary. Overhead completely eats into company profit.
2) If they're still bleeding ... lay people off strategically. Starting with those least utilized and those who have the highest salaries for the lowest return.
3) Cut down hours across the board. Probably to something like 32 hours.
I was put on three months of furlough (unpaid, but at least my health insurance continues) on April 1st. I'm fine with it because I have an emergency cash cushion and have filed for unemployment to tide me over. I'd rather be catching up on yard work at home than washing my hands 20 times a day and worrying about catching someone else's cooties at work anyway. I'm an introvert by nature, so this is what I have been training for! LOL
Prior to my leaving, the company had asked for volunteers to take their PTO and scheduled vacations now. Their rationale was that when this pandemic is over in several months, hopefully, the business will come roaring back, and all hands on deck will be needed at that time.
Of course, there may have been ulterior motives. :-)
Since you work in the legal profession, think of billable hours.
Owners of the company will assess billable hours versus salaries and overhead in downtimes. Think of it as somebody who has a lot of $ in the stock market checking every day to see how much they're losing.
So, when owners see the hemorrhaging, the steps work like this...
1) Request PTO be taken instead of administrative/overhead hours. PTO is part of your salary. Overhead completely eats into company profit.
2) If they're still bleeding ... lay people off strategically. Starting with those least utilized and those who have the highest salaries for the lowest return.
3) Cut down hours across the board. Probably to something like 32 hours.
After that, the very drastic measures start...
Hi Jojoba, this isn't my job, but a friend's. Mod cut.
UPDATE: The admin explained the reasoning for deleted posts. Not my fault. And I agree with the reason now that I know why. Doesn't matter anyway as the deleted posts by me and others were pointless.
Anyway, I appreciate your explanation. It makes more sense now. They are basically forcing PTO so that when they have to lay off they don't incur the extra debt of paying outstanding PTO - is that right?
Last edited by PJSaturn; 04-03-2020 at 09:59 AM..
Reason: Off-topic.
It's common for companies to tell their employees when to take PTO. It's the company's time, not yours.
You know, I struggled with that idea. Because when you are working and accruing, then doesn't it become yours? They have to pay when you quit, so...that's why I thought that time was yours. Now I understand PTO that isn't accrued isn't owned by the employee. But forcing someone to use the time they accrued seems fishy. Of course, I realize corps do whatever they want with little to no regulations or supervision. Clearly.
I was put on three months of furlough (unpaid, but at least my health insurance continues) on April 1st. I'm fine with it because I have an emergency cash cushion and have filed for unemployment to tide me over. I'd rather be catching up on yard work at home than washing my hands 20 times a day and worrying about catching someone else's cooties at work anyway. I'm an introvert by nature, so this is what I have been training for! LOL
Prior to my leaving, the company had asked for volunteers to take their PTO and scheduled vacations now. Their rationale was that when this pandemic is over in several months, hopefully, the business will come roaring back, and all hands on deck will be needed at that time.
Of course, there may have been ulterior motives. :-)
hehe, that's funny. And I agree, not so bad. And the health insurance for me is the biggest plus to hold onto. And thank goodness for unemployment and emergency cash. Really nice of your company to ask for volunteers for PTO and vacations. Sounds like a great company actually who cares about their people. A very rare thing. I hope things go back to normal for you and your family/coworkers.
Anyway, I appreciate your explanation. It makes more sense now. They are basically forcing PTO so that when they have to lay off they don't incur the extra debt of paying outstanding PTO - is that right?
Nah, that's not really the reason.
To put in more simple terms, imagine an employee that sat at home all day today and yesterday and only did 2 hours of work, because work is slow.
So, the company can make $ off the 2 hours the employee worked, but has to eat those remaining hours, unless they use their PTO, which has already been factored into their salary.
Now ... I'm WELL aware that there's jobs where people are paid to more or less sit on their @ss all day ANYWAY. So, how does it affect jobs like that? It probably doesn't.
It's common for companies to tell their employees when to take PTO. It's the company's time, not yours.
My company 'suggests' people take PTO in normal times if they are slow.
A better strategy is to diversify people so they can do multiple tasks and control work flow, cut down work hours, cut down salaries ... create jobs that are needed, and cut the fat.
Instead, you have executives that make large salaries with tons of overhead, employees who can only perform one task, and people who cannot sustain a loss of income for any significant period of time.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
