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Started By
Message
Fortune 500 company screwing over their employees
Posted on 2/27/15 at 9:17 am
Posted on 2/27/15 at 9:17 am
I work for a F500 company and is a very recognizable brand that everyone here would immediately know. We have several large brands under our main brand, each just as recognizable as the main brand.
We were notified this week that our 2014 bonus program was being changed AFTER the year ended. We each signed a statement of bonus compensation at the beginning of 2014 and then received an updated excel spreadsheet with our 2014 sales and our estimated payout at the beginning of February. They are now changing the slope of the bonus payout because they realized their payout was too high and needed to reduce the payout. As you can imagine, this is not settling very well with the sales organization and there are many people that will be looking for new jobs. This has cost me about $5k in reduced bonus.
Why do companies feel this is a good idea? Do they not understand that the repercussions of doing something like this will cost them more than actually paying out the bonus'? I know several people that will not be giving 110% anymore and just doing enough to get by because they feel slighted by the company. I travel an extensive amount and I will not be killing myself anymore by traveling as much as I have in the past.
I know that we should be lucky that we are even receiving a bonus at all but our compensation is heavily tied to this bonus. This is the 3rd year in a row that this company has taken something from us. The first year was they stopped paying for internet for those of us that work remotely. The second year they started charging us more for our company vehicle and now this.
We were notified this week that our 2014 bonus program was being changed AFTER the year ended. We each signed a statement of bonus compensation at the beginning of 2014 and then received an updated excel spreadsheet with our 2014 sales and our estimated payout at the beginning of February. They are now changing the slope of the bonus payout because they realized their payout was too high and needed to reduce the payout. As you can imagine, this is not settling very well with the sales organization and there are many people that will be looking for new jobs. This has cost me about $5k in reduced bonus.
Why do companies feel this is a good idea? Do they not understand that the repercussions of doing something like this will cost them more than actually paying out the bonus'? I know several people that will not be giving 110% anymore and just doing enough to get by because they feel slighted by the company. I travel an extensive amount and I will not be killing myself anymore by traveling as much as I have in the past.
I know that we should be lucky that we are even receiving a bonus at all but our compensation is heavily tied to this bonus. This is the 3rd year in a row that this company has taken something from us. The first year was they stopped paying for internet for those of us that work remotely. The second year they started charging us more for our company vehicle and now this.
7
Posted on 2/27/15 at 9:24 am to CHiPs25
Has your company's costs of doing business increased because of anything the last few years?
If so, it's gotta make up the difference somewhere.
If so, it's gotta make up the difference somewhere.
This post was edited on 2/27/15 at 9:25 am
Posted on 2/27/15 at 9:28 am to Meauxjeaux
No, in fact, we recently reported to wall street how well we're doing and exceeding wall street forecasts, we're announcing dividends to our shareholders. Even worse is that our CEO and COO just sold about $5m and $1.5m of shares respectively within the past week.
Posted on 2/27/15 at 9:41 am to CHiPs25
The sad thing is that they will do this as long as employees allow it. The only thing that will change this is if enough high performers quit and take business with them.
Posted on 2/27/15 at 10:10 am to CHiPs25
Being they are a F500 company, they probably believe that if all those employees really left over this, there would 50 times as many ready to take their place.
If they are changing the slope after the fact... the employees must have collectively destroyed the revenue goals, and depending on what you are selling, maybe the marginal percentage would actually cost them money. If that's the case, the person who designed the bonus structure should be fired.
My third year in the CPA profession, the firm I was at had a similar situation. Our revenue goal was 2 Million. Our bonus pool was 15 percent of revenue from 2 million to 2.1 million, 25 percent of revenue from 2.1 million to 2.3 million, and 40 percent of revenue north of 2.3 million. We had a couple of HUGE new clients come in, and our total revenue was 2.7 million.
The firm partners held to their word and the pool was funded as it was written. But the next year, the pool was completely redone. =)
If they are changing the slope after the fact... the employees must have collectively destroyed the revenue goals, and depending on what you are selling, maybe the marginal percentage would actually cost them money. If that's the case, the person who designed the bonus structure should be fired.
My third year in the CPA profession, the firm I was at had a similar situation. Our revenue goal was 2 Million. Our bonus pool was 15 percent of revenue from 2 million to 2.1 million, 25 percent of revenue from 2.1 million to 2.3 million, and 40 percent of revenue north of 2.3 million. We had a couple of HUGE new clients come in, and our total revenue was 2.7 million.
The firm partners held to their word and the pool was funded as it was written. But the next year, the pool was completely redone. =)
Posted on 2/27/15 at 11:02 am to LSUFanHouston
When they start taking away your coffee....that is the time to find a new job
Posted on 2/27/15 at 11:02 am to CHiPs25
Ignore.
This post was edited on 2/27/15 at 11:32 am
Posted on 2/27/15 at 11:30 am to RemouladeSawce
quote:
(science-heavy, wide breadth of products, prominent motorsports sponsor)
Not the same company. My company is a resin-based products company with a wide breadth of business' under the parent company and prominent consumer brand.
Posted on 2/27/15 at 11:31 am to LSUFanHouston
quote:
Being they are a F500 company, they probably believe that if all those employees really left over this, there would 50 times as many ready to take their place.
This is the unfortunate truth as to how the leadership team thinks.
Posted on 2/27/15 at 11:38 am to CHiPs25
I had it pegged as DuPont. They missed 2014 earnings and recently ate some bad PR for the rolled back bonuses (though justifiable if structured on firm-wide performance) along with the miss. The activist investors are going to be circling there.
Oh well, remain pissed.
If I were in sales and hitting and an employer pulled that on me I wouldn't be there a day longer than necessary.
Oh well, remain pissed.
If I were in sales and hitting and an employer pulled that on me I wouldn't be there a day longer than necessary.This post was edited on 2/27/15 at 11:57 am
Posted on 2/27/15 at 12:05 pm to RemouladeSawce
quote:
If I were in sales and hitting and an employer pulled that on me I wouldn't be there a day longer than necessary.
I exceeded PY by 6% and was 2% above a budget of 4%, so I did my part. Increased my margin by 80bps with a budget of 60bps.
My resume is already updated and is being sent out. I'm just buying my time and working half days.
Posted on 2/27/15 at 12:12 pm to CHiPs25
I have worked for a F500 for 10 years, and getting the shaft goes with the territory. This won't be the first time for you. Usually, they are loyal to the share holders first and foremost. Second, policy changes usually happen due to dumbass people (people watching porn on company phones). You are a number to them. That is all. Accept it, or leave. They don't care.
Posted on 2/27/15 at 12:55 pm to CHiPs25
Dupont is no longer a prominent motorsports sponsor after getting rid of their performance coatings divisions.
Posted on 2/27/15 at 1:19 pm to Kingwood Tiger
quote:
Posted by Kingwood Tiger
When they start taking away your coffee....that is the time to find a new job
Coffee is for closers!
Posted on 2/27/15 at 1:47 pm to Ole War Skule
I work for a Fortune 50 company and the coffee here is the worst I have ever had.
Posted on 2/27/15 at 1:57 pm to southernelite
My bad, evidently out of the loop. I thought they were still on the 24.
Posted on 2/27/15 at 2:07 pm to RemouladeSawce
Axalta sponsors the 24 now.
Posted on 2/27/15 at 10:58 pm to AUCE05
quote:
Usually, they are loyal to the share holders first and foremost.
As they should be.
Posted on 2/28/15 at 7:29 am to slackster
quote:
As they should be.
If they're good to their employees then the rest will come automatically. If you have a group of employees that don't trust the company and are always looking for other jobs, then moves like this are just hiding how bad the business is actually doing.
Posted on 2/28/15 at 7:03 pm to CHiPs25
Your management is getting pressure from the board to increase profits. The quickest way to improve margins is to cut payroll and benefits.
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