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Rather than impose layoffs in economic downturns, some companies choose to offer employees paid furloughs. Under these programs, workers are temporarily dismissed (and paid a fraction of their normal salary) and rehired when the company's prospects improve

Based on this information, what can be implied about the policy of temporary furloughs?




Answer: a. Economic downturns are always followed by rapid recoveries.
b. Workers who accept these furloughs are sometimes hired by other companies.
c. Retaining current employees can be less expensive to the company than having to find and train new ones.
d. Some companies have no choice but to reduce the number of people on the payroll.
e. Some furloughed employees are paid no salary at all.

2007-03-26 12:52:34 · 3 answers · asked by Lizs Boo S 2 in Science & Mathematics Zoology

3 answers

"a" is wrong because it's not always true that good follows bad - the economy may never recover to the point it was before the layoffs;

"b" is likewise out - I would imagine that there's a contractual obligation to be considered, or that the companies who could hire employees are suffering the same economic downturn;

"c" is the most obvious answer as it makes sense as far as the company is concerned - an upturn would be best taken advantage of at the outset, therefore it's best to have workers ready-to-go, so to speak;

"d" is unlikely given your criteria that they are paid a 'retainer' - if they were not there would be nothing to prevent them getting employment elsewhere.

Hope this helps!

Love and Light,


Jarrah

2007-03-26 15:58:34 · answer #1 · answered by jarrah_fortytwo 3 · 0 0

I'd guess C...It really is a guess, though, but that one makes more sense than the other choices.

2007-03-26 13:00:47 · answer #2 · answered by hcbiochem 7 · 0 0

c

2007-03-26 13:02:25 · answer #3 · answered by Anonymous · 0 0

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