Because then you'd still have more people than you need, except now everyone is poorly motivated, and your best people will just leave.
Germany does actually have a model called "Kurzarbeit" (literally "short work") to reduce hours across the board while some of the wage losses are being offset by payment from the unemployment insurance system. The idea is to avoid layoffs during times of recession etc. which would allow the companies to bounce back more quickly once the situation has picked up again.
I get that it seems like what would happen, but where are the cases proving that's what happened? Especially in an economy shedding jobs, there may not be many other places to go.
Also, studies seem to find that money doesn't motivate people to perform at a higher level.
>Also, studies seem to find that money doesn't motivate people to perform at a higher level.
What that really means is that if you're paying $200k now, bumping to $250k isn't going to make your workers more productive. However, if you're paying $200k now and you cut the pay to $180k, and your competitors are offering $230k, your best performers are still going to jump ship.
The top talent can jump jobs on a whim in major tech hubs. The only senior programmers I know in Chicago that have been unemployed or underemployed for longer than a few weeks in the past decade were of their own volition. Maybe this is just my bubble and maybe it's just Chicago, but I doubt both of those.
How do you think of "best"? There are many senses:
(a) People that do well in a particular organizational context?
(b) People with a certain set of skills?
In the software industry, these do change pretty dramatically from time to time. For example, the FAANG style of interviews disrupted what came before. And of course, there is considerable variation between FAANG style hiring and others.
I bring all this up not just to be pedantic... (Is there anything wrong with being pedantic? We should do a proper study to find out, but I digress...) ... because I'm curious if and how the industry is changing.
Many software developers got comfortable with being in the driver's seat and being fawned over. This has changed a lot, it seems to me, in the last 3 to 6 months. Where does this leave us?
I really wish that the US's Paycheck Protection Program had been modeled on Kurzarbeit - the money is distributed to workers via their employers, saving a lot of bureaucracy, but because it's directly tied to previous wages, would have prevented a lot of the shenanigans we saw with PPP in the US.
Germany does actually have a model called "Kurzarbeit" (literally "short work") to reduce hours across the board while some of the wage losses are being offset by payment from the unemployment insurance system. The idea is to avoid layoffs during times of recession etc. which would allow the companies to bounce back more quickly once the situation has picked up again.