So lets imagine a company that comes up on a Friday afternoon, and lets the employees know of the following changes for 2009:
- Add five days of leave to twenty already, then tosses out all federal holidays (all ten). If you want Xmas off...take regular leave....otherwise, work.
- Recreate sick leave....even though they agreed it was very unprofitable two years ago and chucked it. So if you have two years with the company....you get five days. You can collect days and save them.
- Decrease 401k matching contributions from five percent, to three percent.
- Increase educational funding from $3.5k a year to $6k a year.
So you look at this...and the number of angry employees and ask why.
Then you add in the fact that the whole pay system has been shift around and you work for a particular division now....with new pay numbers. You look at the new employees who come and go now.....mostly without kids....so the company doesn't pay DODDs costs.
You realize that older employees want a decent 401K contribution.....so they leave because of this deal. As they leave, you hire mostly young 25-year old guys with no bachelors....but offer up the $6k a year for education allowance. The kid finishes his degree in two years.....which he doesn't care about 401K contributions anyway, so they save this money. The guy comes up and finds a new company and better job after two years.....but then because of the education allowance rules....he ends up paying back the cheap company $4k because he didn't stay a full year after each semester. So the company gets this money back.
With all of this profit, this division eventually sells itself next summer, to someone who thinks they are getting a really good deal. The interesting thing is that employee-wise....its a loser of a company. But the buyer doesn't grasp that part. He's looking at the numbers. Turn-over of 40 to 50 percent a year doesn't stand out.....its the money that matters.
So you stand there and look at this joke and wonder why they'd suddenly discuss "loyalty" with the company employees today....three days after the announcement of the 2009 changes.
Yes, it would be nice if this was an imaginary company. Thats the problem.