I have to retrench. Do I take out junior or senior?

Dear Aunty B,


I am a small retail business and have to cut my costs in the new year. It is the first time I have done this so I am dreading it!

I have a junior at about $30,000 and a more senior staff member at $50,000. Who do I let go?





Dear LD,

Oh you poor thing. First do you absolutely have to retrench? The two things you don’t want to do unless it is essential is cut back on marketing and let staff go.

Have you tried everything else? Better stock management, great special deals? Better value deals for customers?

The problem with cutting staff is it takes a while before the benefits flow through. Plus you lose their expertise!

However if you must, you must. Given that both are efficient I would go for junior (who sounds like he is not being paid minimum award wages).

This is a time to focus on experience, trust and knowledge of your company. Junior is also being paid less so the advantages will flow through to your bottom line quicker – though of course they won’t be as great.

Also when you can hire a junior again; you will have the senior staff member who can train.


Good luck!


Your Aunty B


Aunty B - Your problems answered by SmartCompany's business bitch

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