<p>zoosermom–money…they can pay someone $100,000 to do a job or $40,000. If it means hiring 2 $40,000 workers to do the job of the $100,000 worker–but keeping all the rest of your staff—well, hard choice but sometimes it has to be done.</p>
<p>One company near us had an employee meeting–all employees in a huge conference center. This was back in 2009. They had 1/3rd of the room stand up and told everyone to look around. They said they had 2 choices-either they fire all the people standing up and keep contributing to the 401K’s or everyone keeps their job and they were suspending 401K matches for 3 years. They then took a vote. Most people, fortunately, voted for to suspend the match. I’m sure the CEO didn’t want to make that hard choice…but sometimes you have to do what you have to do.</p>