这种方法可以减少裁员，通过提供劳动力成本减少，因此，导致工作保存。这个方案的缺点是，它留下了很深的情感伤痕在员工的薪酬减少了头脑（萨齐克et al，2009）。管理者，传统上，在协议的奖金削减，提高被淘汰，甚至削减福利，但基本工资是一个必须为他们。今天，支付可以削减的主要方式是确保即使在一次工资削减后，有领导素质的员工将是明星相比，那些在他们之间的表演较少。薪酬削减已实施的各种组织，其中最大的削减是由高层管理人员的组织，在某些情况下，所有的利润。例如，在Winnebago Industries Inc.，减薪百分之20，被CEO，其他高管被允许只需要百分之10的削减（萨齐克et al，2009）。另一方面，所有其他受薪工人不得不经历百分之3降低他们的基本工资。此外，也有一些组织使用基于股票的激励补偿。例如，韦尔度假村授予股票补偿那些全职工作的员工每年。这有助于首席执行官部分减少打击随着给员工一定的所有权参与在未来的公司的成功。
The concept beneath unpaid leaves, often known as furloughs lies in the fact that by distributing the pain of downturn in a broad manner across the working class, companies are able to retain their talented members by wining enhanced loyalty and they in turn try positioning themselves in a better manner for the recovery of their associated company. Murray Manufacturing by adopting this method will be able to help boost the motivation of employees and managers such as Roger. By furloughing members of an organization, top management is able to secure some time for themselves to make decisions in a smart manner. As a matter of fact furloughs also involve lesser cost. In the region of China, Ernst and Young an accounting giant made an offer to its employees to have the ability to take unpaid leave for a month. Approximately 90 percent of the auditors in the firms chose this and hence payroll costs were reduced by the company by a margin of 16 percent.
This method enables reduction of layoffs by providing labor cost reduction and therefore leading towards jobs preservation. The disadvantage with this alternative is that it leaves a deep emotional scar in the minds of the employees whose pay has been cut (Zatzick et al, 2009). Managers, traditionally, were in agreement to bonus cutting, raises being eliminated and even slashing benefits but basic pay was a must for them. Today, the main way by which pays can be cut is by making sure that even after a pay cut, employees who have the leadership quality in them will be stars in comparison to those performing less amongst them. Pay cuts have been implemented by various organizations wherein maximum cut is taken by the top management of an organization and in some scenarios all profit is taken. For example, at Winnebago Industries Inc., 20 percent pay cut was taken by the CEO while the other top executives were allowed to take only 10 percent of the cut (Zatzick et al, 2009). All other salaried workers on the other hand had to experience 3 percent reduction in their basic pay. Also, there are some organizations that use compensation of incentive based on stock. For example, Vail Resorts granted stock compensation to those employees working full time annually. This helped the CEO to partially reduce the blow along with giving employees certain ownership of participating in the success of the company in future.