Conference kaosws::canada

    I have not received it yet, could you post it here.
    

Subject: HR Bulletin #29 - Digital's Rewards Programs                           

HR BULLETIN #29    -   December 1994

SUBJECT: Digital's Rewards Program

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
SUMMARY:
Digital has just announced that the salary program will be Creactivated
effective January 1995. During the past year, many changes have been made
to the basic philosophies around which the Rewards Program is designed and
implemented.

The purpose of this Bulletin is to begin to explain these changes
to all employees.  More work will evolve during the balance of
the fiscal year and it is intended that the new concepts will be
fully operational by FY96.

OVERRIDING GOAL IN REDESIGNING OUR REWARDS PROGRAM:
Over time, Digital will reward employees more and more based on
variable compensation models.  They are called 'variable' to
reflect that the total compensation is made up of a number of
different types of pay. Success Sharing is an example of one
type.  This method of compensating each of us directly ties the
size of the reward to the degree of success realized by that
effort.  The greater the success, the larger the reward.
Sometimes compensation received in the new variable programs
reflects the success of individuals; other times, it reflects the
success of teams.  Therefore, these successes are shared within
individual work units, across Businesses or Functions, throughout
the Territory and indeed, around the world.  The more successful
Digital becomes, the more we all share in those successes.  In
times where the Company is less successful, we all share those
Clean times equally.

PUTTING IT ALL TOGETHER:
During FY95, your Compensation framework will look like this:
Base Pay +
   Success Sharing +
      Equity Adjustment    =    Your Total Salary for FY95.

Each year, a portion of the approved spending is directed toward
Success Sharing and other forms of variable pay.  As well, a
portion may be directed toward Equity Adjustments.
Success Sharing has already begun to pay off for FY95 in some
Businesses and Functions.  As Digital's performance continues to
improve during the balance of the year, we look forward to paying
out this reward component.
Equity Adjustment replaces the traditional salary program and
will be applied in situations where:

- critical skill sets for which external market indicates faster
pay acceleration

- Key Contributors

- individuals low in the salary range relative to others in the
peer group with similar performance

-
 promotions reflecting substantially increased responsibilities
Such situations normally apply to fewer than half of all
employees.

If you have any questions about the information included in this
Bulletin, contact your Manager.
ADDITIONAL INFORMATION:
We recognize that employees require information and knowledge to
enable a full understanding and support of such a significant
change to the traditional compensation methods at Digital.  For
many of us, we have become very accustomed to the 'annual
increase' and adjusting to a new direction will happen over time.
Digital continues to ensure that the base pay structure provided
to employees Company-wide, is fully competitive with those
companies with which we compete for skills and talent.
Most large Corporations throughout North America have adopted a
Reward Program similar to the one described here.
    

    The way I read it, it says:
    
     We'll give out the variable portion based on whatever we want:
    
    >>Sometimes compensation received in the new variable programs
    >>reflects the success of individuals; other times, it reflects the
    >>success of teams.  Therefore, these successes are shared within
    >>individual work units, across Businesses or Functions, throughout
    >>the Territory and indeed, around the world. 
    
    The increase in base pay will only apply to 50% of the people:
    
    >>Equity Adjustment replaces the traditional salary program and
    >>will be applied in situations where:
    
    >>- critical skill sets for which external market indicates faster
    >>pay acceleration
    >>- Key Contributors
    >>- individuals low in the salary range relative to others in the
    >>peer group with similar performance
    >>- promotions reflecting substantially increased responsibilities
    
    *****Such situations normally apply to fewer than half of all
    employees.******
    
     Any bets on which "half" ?
    
    
    								Derek.

    To me it sounds as if our wages will be (rapidly) erroded by inflation.
    
    Success sharing is nice but it doesn't pay the mortgage.
    
    Senario : We are rapidly losing staff from key roles within the
    	      company. 6 months later it is considered to be an issue
    	      by the appropriate level of management. At which time they
    	      look at the departure forms and find out that the reason
    	      for leaving (in most cases) was pay. 3 months later after
    	      an industry survey the pay scale for that job is bumped.
    
    	      But at this point it is too late, it may stop those left
    	      from leaving but the truely aggressive/ambitious people
    	      have already left.
    
    
    how likely does this seem ???
    
    
    Brian V
    
     

	I asked my manager about increasing the base pay and he said that the
	payment equity portion will do that. Success sharing will be a 
	percentage of the amount. Not sure if the success sharing will be a 
	percentage of base pay + payment equity, ie will the pay raise be 
	applied first if the success sharing and the pay raise come at the 
	same time.

	Susan

    
    
    	Okay, Mrs. 4 -day work week speaks again -
    
    	Money's what 99.x% of employees want, but there's
    a few employees who would take compensation like
    
    	- shorter work week  (that's me)
    	- more vacation
    	- PC upgrades (or a PC if you don't already own one) (me also!)
    	- tuition/sponsorship of a degree (with the time off to do it in,
    	                                   also me!)
    
    	....because if I have to work like a madwoman to get a
    2% raise that the government's going to take anyway, I have
    to ask myself, what's it doing for my quality of life?  And
    if it saved hard cash in a manager's budget, wouldn't it benefit
    the rest of my team?
    
    
    	

    Candace,
    
    I didn't know your marginal tax rate was 100%.  The gov't takes ALL of
    whatever raise you get?  You must be in a really high tax braket.
    
    /Mario

    ref.7 
          Of course you can call it a high tax bracket coz its not worth
    it.The marginal tax rate is not really 100% but close.
    

    
    
    	Here's the math.
    
    
    
    	Candace's Tax Math, 101
        ^^^^^^^^^^^^^^^^^^^^^^^
    
    	digital gives me no pay increase (0).
    	inflation is next to nothing so it could be argued i'm still
    ahead.
    	however, the government increased my taxes (that surtax thing)
    so it did take all my "raise".    
    
    .............and i'm not even in the 100% bracket !!!!
    
    	:^) 
    
    Next lesson: How to letter bomb the revenue minister via Internet.	
    

    
    Variable pay  --- we may be "lucky to have a job"
    
    >>Digital is taking aggressive measures to reduce costs by an additional
    >>$1.7 billion over the next two years, including the elimination of 14,000
    >>more jobs by the end of fiscal 1995 and a further reduction of 9 million
    >>square feet of office and manufacturing space over the next two years.
    
                                                   Merry Christmas indeed -
    
    							Derek Street.

Derek,

Ever considered joining The Optimist Club?

/Mario

    CTHU22::M_MORIN
    
     I joined Mitel during a hiring freeze, lasted 5 years before I quite
    to take another job. I joined Digital during a hiring freeze, have
    lasted 3 years.
    
     I think you can call me optimistic. But that would be hoping for too
    much.
    
    							Derek.

    For once I agree with you.
    
    8^)