Across-the-board pay cuts can reduce labor costs while retaining some skilled employees.

Question

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Across-the-board pay cuts can reduce labor costs by reducing the salary expenses of all employees. Skilled employees may prefer to stay with the company even with a pay cut, as they may not be able to find comparable salaries in the job market. Therefore, some skilled employees can be retained while labor costs are reduced.

Across-The-Board Pay Cuts Can Reduce Labor Costs While Retaining Some