When the Great Recession began early in 2008, both for-profit and not-for-profit companies struggled to react to the uncertainties of a prolonged economic challenge. A common response was entrenchment through reducing salaries, benefits, and positions.
And this approach seemed to make sense. After all, for most companies, payrolls represent one of the largest, if not the largest, cost centers. Additionally, people—unlike most other assets—can be relatively flexible, and when asked to work longer for less, are generally grateful during hard times to be employed.