We could have achieved the same financial result if we had simply cut salaries across the board, but it didn’t feel right to ask people to work the same amount for less pay. What we offered was a trade: your time in exchange for a loss of pay.
That was a very smart move. Financially, it’s the same for the company, but it’s not so for the employee. They might be able to find something else that could make money while on leave. As they can take it when they want, they might be able investigate opportunities ahead of time.
Emotionally it’s better also. It always helps to have some control.
Smart, smart, smart.