Why will companies lay-off entry level positions, and not administrative?
If you're talking the CEO's well it is because without those crooks, who'd be running the scams for the companies? If you mean secretaries and book keepers, same thing, who'd run the scams and keep the financial books? Regular laborers are treated as pawns in a very dangerous chess game.
Layoffs are a signal that a company has seen a measured shrinkage in its market demand and a reduction in its cash flow. To bring the company into balance with the new revenue stream, payroll must be cut. This is usually the quickest response for most companies since payroll affects around 70% of the revenue stream. The layoffs occur in the entry level positions because that is where the least amount of talent resides at the time. It's like a pool of water in evaporation...the evaporation can be detected by the ebbing of the edges. Normally these layoffs will occur in that part of the company most directly related to the market demand...that would be the production side. As market demand shrinks so does the need for the production of the product and the need for entry level people in training. Administration is not as directly tied to the marketplace in that a company can shrink significantly but still must complete the administration necessary to function...payroll, orders, reports, filing, government compliance, etc. We might also note that administration is not an area of the company that tends to grow very rapidly...it generally lags improvements in the market until the workload becomes overbearing. This is a principle ignored by those in government in Washington as administrative capability continues to expand and expand creating redundant efforts and costs for the taxpayer. WB
Simply put...The administrative guy/girls have more value. I mean the company may have so much more invested in those guys since they've been with them for so long. New guys are just that...new. No money invested in 'em so none lost. ie....training or other waisted money.
I agree with Wayne Brown...he pretty much summed up what I would have said but I would like to add that the percentage of CEO's, accountants, payroll coordinators, human resources personnel that are crook is relatively small compared to the vast amount of executives that are hard working, caring, and intelligent human beings that would never "run a scam" on anyone. I think the media has demonized executives and to think they are ALL crooks is a naive statement in my opinion.
On the other hand...I am not saying the crooks don't exist because they do and they are getting caught. The laws are tightening up and people who are business crooks are getting prosecuted.
To answer your question yankeeintexas (I am a yankeeinlouisiana), entry level positions are just that...entry level which typically require very little skill while on the other hand it is difficult to relplace a good accountant, CEO, payroll coordinator etc. because they are typically trained specifically for that position and will require a certain number of years of experience before getting hired. Neither employee is more important on a personal note; it's all about making good financial decisions to keep the company alive. Entry level employees are added and subtracted as the financial status of the company changes while the administrative positions will trypically stay the same and not expand the way the labor force does. Great question!!
Companies lay-off entry level positions first because they already have workers who can do those jobs but have them do it on top of their current duties. And you'd be surprised if you think it may only be entry level because there are a lot of instances where there are some administrative cuts but because there are significantly fewer of them they go relatively un-noticed. And usually the administrative cuts are in customer service, accounting, and other high ranking clerical positions where they can easily increase a workload and have fewer staff members.
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