How a business leader follows through or not, can have huge ripple effects. Have you asked your staff recently what kind of ripples they are feeling internally?

And I agree, that sometimes layoffs are the right thing to do.

However, in the current business climate, layoffs have become an automatic reaction to any downturn in the market, and research shows that this is most often a mistake that ends up costing companies money.

And I also disagree that giving employees more money creates extrinsic motivation. If you took away the money, who would come to work?