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Thursday, March 29, 2007

Pay cuts at Circuit City, pathetic

Circuit City announces it will fire its better-paid workers and replace them with lower-paid new hires as soon as possible. With that news, the company's stock price rises. This is the harsh reality of the business world we live in today. Public companies value their workers only as long as their stock is up. Is is any wonder employees have little loyalty to their employers?
I have to wonder, how will Circuit City lure its new hires? How will it incentify them? Even a desperate low-wage worker might think twice about working for a company that will cut them loose if they rack up hours or start to earn too much. In a environment where many businesses are coming up with all kinds of ways to create employee loyalty, I predict the future is grim for Circuit City. To read the full story in today's Miami Herald, click here.


Anonymous Anonymous said...

You're right, that's no way to win employee loyalty. However, you point out that it is business and sometimes harsh decisions must be made. But what if there were another option? Instead of cutting jobs & costs, what if companies were to simply increase productivity? I think Circuit City's competition, Best Buy, has found the answer. They've been featured in numerous media for partnering with CultureRx to implement a Results-Only Work Environment. Apparently giving their corporate employees extreme flexibility and control has increased productivity! Imagine a business running itself in that manner!

6:45 PM  

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