Question
A construction company has 12 workers who are paid minimum wage. The company wants to reduce costs because there is less work. Which action is an available and effective option from the perspective of the business?
Have the workers work more quickly
Hire workers who are not as skilled
Reduce the amount workers are paid
Select several workers to be laid off
Have the workers work more quickly
Hire workers who are not as skilled
Reduce the amount workers are paid
Select several workers to be laid off
Answers
GPT-4o mini
From the perspective of reducing costs effectively, the most viable option for the construction company would be to **select several workers to be laid off**. This action directly decreases labor costs by reducing the overall number of employees, which is a common approach during periods of reduced work.
While other options like having workers work more quickly or hiring less skilled workers might seem advantageous, they could lead to decreased morale, lower productivity, and potentially higher costs in the long run due to quality issues or employee dissatisfaction. Reducing the amount workers are paid could also lead to a decrease in morale and may not be legally permissible depending on minimum wage laws. Therefore, layoffs are often considered a straightforward and effective cost-cutting measure in such scenarios.
While other options like having workers work more quickly or hiring less skilled workers might seem advantageous, they could lead to decreased morale, lower productivity, and potentially higher costs in the long run due to quality issues or employee dissatisfaction. Reducing the amount workers are paid could also lead to a decrease in morale and may not be legally permissible depending on minimum wage laws. Therefore, layoffs are often considered a straightforward and effective cost-cutting measure in such scenarios.