Company forces veteran employees to reapply for their roles at lower pay after a "restructure": 'Same job, same responsibilities. But [...] the posted salary is $8k less than what we're currently making'

Companies have a tendency to underestimate just how closely their survival is tied to the know-how of their veteran staff. Undervaluing them when it comes to salary negotiations, leaning on their desperation alone will tie them to their job.

Some of this underestimation is done through sheer oversight; you don't think about the things that are working as long as they are working. Otherwise, it may be done intentionally to cut costs and maintain control, but the acceleration of turnover and damage to the company's reputation make it hardly worth the effort.

The thing is, it's often the case, because of restrictions and circumstances in their own lives, workers have a tendency to feel that there is no other option for them and they will stay in a workplace where conditions are consistently worstening for far longer than they probably should, like a frog boiling in a pot of water with out realizing that it can and should jump out. 

But there is a breaking point; give someone poor enough working conditions or ignore their input for long enough, and it won't matter to them whether or not they have to take a pay cut to leave, the cost to them will outweigh the benefit of just being as far away from where they currently are as possible, literally anywhere else.

And then, once the plug has been pulled with one worker leaving and others realizing they can leave too, the organization will be left standing there, wondering just where the heck everyone went as their workforce evaporates overnight. Then it's rebuilding, but there's no replacing the brain-drain of the know-how of process and legacy knowledge, as once-important unfinished tasks go ignored and fester.

This company certainly took things to another level, and gutted their workforce themselves, laying off everyone at once and forcing them to reapply for jobs that they had held for even 6 years. They posted the jobs for $8,000 lower than what the employees had already been making, making even their veteran staff justify their worth for even less.

Author image for Brad Dickson Brad Dickson
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