More and more we read in the news that many companies are laying off a percentage of their staff in order to make more profit, or as part of financial cutbacks. Some companies may offer employees a severance package and others may let them go with just a notice. But what about those employees who believe in the company and feel that the future outlook is bright. Would you agree with management to take a pay cut?
The employees of the Internet search marketing firm InfoSearch Media did just that. According to the company, the majority of its 25 employees have chosen to take temporary pay cuts of 33% to 71% in a show of commitment and solidarity. Not only have the employees agreed to a pay cut, but the CEO and CFO had already agreed previously to reduce their salaries by 71% and 64% respectively.
These actions demonstrate that InfoSearch employees clearly have faith in the company’s future, and show that they are willing to make short-term, individual sacrifices to ensure collective longer-term success.
Commenting on his employees decisions, Chief Executive Officer George Lichter stated, “These reductions help us continue to deliver high value for our clients, and this kind of broad-based commitment is particularly telling. I believe this is the strongest possible indication of how positively those closest to the business feel about its future prospects.”
“We have done a lot of belt tightening throughout the entire organization over the past few months and as a result, are close to achieving recurring operating profit while still incurring disproportionate costs of being a small public company,” says Chief Financial Officer Scott Brogi. “We are hopeful this kind of near-term investment will reap significant rewards for our dedicated team here at InfoSearch Media.”
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