“How to reduce salaries using the Lean-approach,” Serhii Komberianov, President of Lean Institute Ukraine

In times of crisis, company executives have to make difficult but necessary decisions. Among them is the optimization of the salary fund. Serhii Komberianov, President of Lean Institute Ukraine, explains how to carry out this process as painlessly as possible and get profit from it.

The organizational process transformation specialist provides tips to help entrepreneurs reduce their salaries wisely and make financial decisions that are decent for businesses in difficult times:

• try not to lay off employees, preferring other methods of keeping the business;
• vacations at your own expense and the transition to part-time lead to a situation of lose/lose — the employee lose money, and you — his potential;
• salaries should be cut in proportion to the costs incurred by the business;
• to reduce wages better on the principle that the higher the earnings, the greater the percentage of its reduction;
• first of all, its necessary to reduce salaries to top management — its he who is responsible for the state of the business. These are the people who need to understand how to pull a company out of a crisis.

Read more about the use of Lean-methodology when reviewing the company’s salary fund in the column for NV by President of Lean Institute Ukraine Serhii Komberianov.