When meat orders from eating places, accommodations and different food-service purchasers dried up at two of Hormel Foods Corp. ’s crops in April, finance chief Jim Sheehan selected to furlough roughly 350 staff, however didn’t lay them off. These furloughed staff didn’t obtain pay however received advantages resembling well being care.
It was a cautious calculus. After years of effort to safe expertise in a good labor market, many finance chiefs responding to the shock of the coronavirus pandemic have to date most well-liked to furlough staff as a substitute of severing ties utterly, even when it means spending a bit extra.
“Our staff are long-term investments for us and so they’re a valuable useful resource, so we wanted to do what we may,” Mr. Sheehan stated.
Different finance chiefs made an analogous selection because the coronavirus pandemic shut down companies throughout the nation. Of the 87 corporations within the S&P 500 to announce employees reductions from early March via the top of June, 65 selected to furlough staff, based on an evaluation of securities filings by information supplier MyLogicIQ.