Today, Circuit City announced that it was, among other things, laying off 3,500 workers because these store workers were making “well above the market-based salary range for their role.” The company announced that they will be replaced by lower paid workers, working within the market-based salary range.
I have no doubt that the workers created these out-of-market earnings themselves and should be punished for doing so. Management, I’m sure, had nothing to do with it. NOT.
While many managers get laid off as a result of poor management practice, it continues to amaze me that upper management doesn’t get to share in the poor decision making by getting the boot as well. Or at least getting their pay cut in half as just reward.
After all, boards of directors and shareholders pay management to make good decisions. And having 3,500 of the store’s finest get the ax because no one checked out the market pricing for wages and salaries simply screams of poor decision making by management.
Of course, the Circuit City management team won’t get laid off because I’m sure they will do market based research on their own wages, salaries and perks and find themselves under the market for upper management.
Then get a raise to conform to the market. Market based pay should work for getting raises too, right?