HRLori to the Rescue!

HRLori  - HRLori to the Rescue!

You’re Kidding Me

I’m curious to know what their HR people think of this.

It can’t all be good.

More later.

Later: I was really busy when I saw this and just wanted to get the post out quickly!

Anyway, I really do understand the need to cut costs and look at the business from a strategic point of view, however Circuit City is taking a very big risk here. Why not cut salaries all around (including those of the executives) in conjunction with the announced store closures instead of firing those sales associates who make more than benchmark?

This plan really does not make any sense to me, particularly since I am incredibly risk averse. When you terminate higher paid employees in order to hire those at a lower rate, you run the risk of running afoul of a number of statutes – the ADEA particularly comes to mind as a distinct possibility. Never mind the other concerns such as the time and cost of recruiting 3400 replacements or even things like administering COBRA for 3400 people.

I really hope that there is more to this story. That whatever is being reported is incomplete. That Circuit City is going to offer the lower paying positions first to existing employees. Just…something. Because I can’t believe that a company, particularly one in semi-dire straits, would want to invite any kind of lawsuit or bad press at this particular time.

Category: HR News