British airline is one of the most renowned airlines in the United Kingdom. It employees about 45,000 individuals, 16,500 cabin crew members and 3,900 pilots. The reduction in the salaries of crew members paid per hour is a variable cost that is unlikely to be good news to the employees affected. This, in turn, will significantly affect the performance of the organization. The department that is responsible for the pay cut is the human resource department.
It is imperative that the human resource department discusses with the employees about the issue that the organization faces that forces it to reduce employees' salaries. On the same, it should consult with the employees on alternatives to such pay cuts or any other type of compensation that will ensure such employees are not thrown off balance ( Chen, Daniel & Horton, 2009) . Other than employees’ ideas, to correct the variance, the company could offer the employees extra days of unpaid leave. Besides, rather than reducing the salaries of current employees, the company could freeze any other hiring-related undertakings. Closely related to this, it could reduce employee bonuses, find cheaper alternatives to undertakings such as office parties, and postpone any equipment upgrade that is not vital, among others.
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There is a need to check into other avenues of reducing the operating cost of the airline other than reducing crew members' salaries. The reason behind this is such an action, especially if it is abrupt, is likely to demoralize them, and their work performance quality will be affected ( Chen, Daniel & Horton, 2009) . Given that this is an industry in which customer service is indispensable, it is imperative that the organization looks into alternatives such as the extended unpaid leaves and cutting down on office spending. Such is unlikely to have a dire implication on the performance of the airline. Besides, consulting the employees is necessary to ensure that they feel valued, and they continue owning the brand in a way that makes it successful.
References
Chen, D. L., & Horton, J. J. (2009). The wages of pay cuts: Evidence from a field experiment . Working paper.
