Immediate payroll savings in a company can conceal the cost of losing experienced personnel. If demand changes, an organization may lack the institutional knowledge and staff needed to expand. Replacing people it recently dismissed can then cost more than retaining them would have done. The comparison supports assessing which skills are worth preserving and how much spare capacity to retain before deciding cuts solely by salary.
Notable Point ยท 53:12-54:22
Staff cuts can make later expansion more expensive
A staffing comparison explains how immediate savings can leave an organization paying more to recover lost skills and capacity.