| Being a relatively long time Deccie, I have noticed that
whenever Ken is asked that question, he has responded
in about the same fashion. He will NEVER say no lay offs.
I dont think it will happen unless it gets really bad.
Anyone who has been around here has seen hiring and salary
freezes, major reorgs etc. However, One still gets the
jitters wondering will THIS be the time?
|
|
+-+-+-+-+-+-+-+
|d|i|g|i|t|a|l| I N T E R O F F I C E M E M O R A N D U M
+-+-+-+-+-+-+-+
TO: U.S. Employees DATE: 19 May 1989
FROM: Executive Committee
SUBJ: SALARY DELAY
(This message is to be communicated to every US Employee)
During the last several quarters, revenues were less than
anticipated. The U.S., in particular, saw demand fall below
expectations while business remains strong in Europe and GIA.
Steps have been taken to control costs by eliminating unnecessary
spending and limiting hiring to only critical positions.
As an additional step in the U.S., we also see the need to delay
the FY90 U.S. Pay Program for all employees beginning in Q1.
The situation will be reviewed at the end of Q1 to see if a
continuation of the delay is warranted. It is, of course, our
hope that business conditions will allow implementation of the
pay program.
This action will be reviewed on a country by country basis to
determine whether similar steps are necessary.
We appreciate your continued efforts and support as we address the
current situation. We also encourage you to continue your efforts
to reduce and eliminate expenses in your cost center.
We have the best people, the best products and magnificent
technology. Our challenge now is to concentrate the efforts and
assets of the entire corporation so that our customers have a
clear understanding of our ability to satisfy their needs.
COMMUNICATION PROCESS
---------------------
Thursday, May 18th
------------------
At 9:00 a.m. You should begin communicating appropriate messages
to your direct reports.
By 11:00 a.m. Your direct reports hold meetings or telephone
conferences with managers who report to them and
communicate the messages.
Friday, May 19th
----------------
At 4:00 pm Employee Communications puts up on LIVE WIRE the
salary communique. A "pointer" will be placed on
the Digital notesfile to "point" employees to
LIVE WIRE for information.
Public Relations and Investor Relations will have
statements to release to the media and financial
community.
QUESTIONS AND ANSWERS: RE: THE SALARY INCREASE DELAY
---------------------
1. Is this worldwide?
The delay is being implemented in the U.S., where the
revenue shortfall is most acute. However, this action will be
reviewed on a country-by-country basis to determine whether
similar steps are necessary.
2. Does this affect both exempt and nonexempt employees?
Yes, it affects all U.S. Digital employees.
3. Will implementation of JEC in the U.S. be affected by this
action?
No. JEC will occur as planned, effective July 2, the first day
of the new fiscal year. All managers should communicate these
classifications to employees by July 1.
4. Will supervisors have new salary ranges to show employees when
communicating JEC job codes?
Yes. Supervisors will have access to a revised FY90 structure,
which will remain in effect for the duration of the delay. A
review of the FY90 structure will be conducted before the
resumption of the pay program to determine if updates should
occur.
5. What if employees are below minimum or over maximum of their
new salary ranges when JEC is implemented on July 1?
In both situations, the current policies will apply at the end of
the delay when the new program commences. Refer to the
SALARY MANAGEMENT binder, Section 5, for more details concerning
these policies.
6. What will be the status of the remaining salary increases planned
for FY89?
The FY89 program should proceed as planned. Senior management's
expectation is that there should be NO OVERSPENDING or overall
decrease in frequency from the approved FY89 plan.
7. Should promotions continue during this delay? If so, will there
be money to go along with them? If the money is not available
during the delay, will a raise be retroactive once the delay is
over?
Promotions should continue as required by the business, but there
will be no money available to fund increases. If an employee is
promoted and is below the minimum of the range, the current
policy of bringing the employee to the minimum of the range
within three months will apply when the new pay program commences.
There will be no retroactive raises. Also, the number of
promotions and overall movement in the average salary range
indicators will be monitored during the delay period.
8. Should performance reviews continue during this period? If so,
how will they be used?
Yes. Employees' performance reviews should continue during this
period. Following policy, an employee's job performance should
be reviewed annually. Performance ratings should be entered
onto the Employee Master File. These may be used as the most
recent ratings when Salary Planning begins.
9. What happens if an employee's job changes significantly due to
business changes or reorganization during the delay?
If an employee's job changes significantly at any time, he or
she may need to be re-classified. During this salary increase
delay, as well as afterwards, employees should be classified
correctly according to the work being performed.
10. Will an employee's salary review date change permanently?
Yes. Every employee's salary review date will advance according
to the length of the salary increase delay. In addition, the
timing of an increase also may be extended further based on the
employee's performance and position in the salary range.
Please refer to the SALARY MANAGEMENT binder, Section 5,
for more details on timing of increases.
11. When will increases begin again?
The situation will be monitored by senior management and reviewed
at the end of Q1 to see if a continuation of the delay is
warranted. When the decision is made to end the delay, Salary
Planning will begin. Employee salary increases will be granted
once the overall salary plan has been approved.
12. In the future, will the amount available for salary increases
across the company be linked to the company's performance?
The development of a salary increase budget is linked to several
factors. While we strive to pay compeititively, equitably, and
for performance, we also have to look at another influencing
factor -- affordability. Company performance will always be a
consideration in what we can afford to deliver in salary increases.
|
| When I worked for a non-profit agency a few years ago, I had to
investigate the subject of unemployment contributions in Mass. What's
true for a small non-profit may be different than what's true for a
large corporation, but at the time employers could choose one of two
methods for contributions.
They could make regular contributions into the system according to a
state formula based on numbers of employees (etc), or they could take
a risk and make no contributions unless employees actually came
forward to collect, at which point they would be required to bear a
significantly larger amount of the burden than they would otherwise.
Holly
|