Conference 7.286::digital

    In our January business meeting (you kknow,the one everyone *had* to
    attend) it was definitely stated that bonuses would be given to US
    employees if the US met it's revenue goals. This is because the US is
    behind everyone else as far as making money. This has NOTHING to do
    with Europe,GIA etc.
    Ken

    But is that just US sales - not engineering, manufacturing, etc?  If it
    is just for a part of the company, then I think it stinks.  Already too
    many of the awards and perks are not available to every employee. 
    Selling is important, but in order to sell something, it has to be
    produced - and last I looked, the sales force wasn't developing the
    products.
    
    

    OK,I seem to recall that in the video,Zereski said the bonus would go
    to all US field employees. Anyone got a better memory than me?
    
    Ken

    I also thought Z said "field" employees.  After missing the #'s for so
    many quarters, I guess they feel incentives are necessary to make it
    happen.
    
    Steve

    I had the opportunity to have breakfast with the big "z" about a month
    ago in Santa Clara (By breakfast, I mean Don and Gil, at the embassy
    suites...at our own table...zoweee...)
    
    We discussed the bonus plan briefly.  I offered a suggestion that was
    similar to Intel and their employee bonus.  Namely, if the company is
    profitable, they take a percentage and divide that up among the troops. 
    When an intel employee walks into their facility at the end of a 6
    month period, there is a little sign posted that says something like
    "Employee bonus - 6.5"  This means that every employee will receive an
    extra check that week for 6.5 days of pay.  Seemed like a GREAT
    motivator to me.  A bonus tied to the performance of the company, and
    scaled to each individual salary level.  Don said he was aware of this
    plan (and may others) and also said that he felt the $250 was a first
    step for Digital, something we had never done before.  He mentioned
    something about 'learning to walk before we run'.  At that point, one
    of my partners walked up for breakfast, late, and I introduced her to
    Don Zereski...was an interesting experience...
    All in All....I think Don is trying some good things,  and at DEC it's
    like changing the course of the QE2, with only a rowboat..
    
    Cheers,
    
    Gil
    

    
      In the Q & A section of the article, it explicitly states that the
     bonus would be for all US area employees, not just for the field.
    
    -rick

    Who cares?  $250.00 is a joke.  Who thinks of these things anyhow?

    re .7
    
    There was considerable complaining about the "unfairness" of sending
    some employees to Circle of Excellance since the criteria for
    consideration was limited. With this new program, it appears that
    "management" has recongized, correctly, that ALL of us contribute
    towards the company's performance; from the floor sweepers all the way
    up to Ken. Hopefully, it will be taken up by the other geographies.
    
    As with all teams, you win as a team and you lose as a team.  This may
    not be such a big deal from the perspective of $$$, but I feel it IS a
    big deal from the perspective of employee consideration.  Digital wins
    and we all get some $$$, Digital loses and we all get to ask what each
    of us could do better the next time.
    
    I don't think this is a joke, I think it is an honest effort to help
    foster team spirit; an attitude in short supply, lately.
    
    Of course, just my opinion (and I will smile a "thank you" WHEN I get
    the $250).
    
    Dave

    re -.2
    
     Lighten up! This is at least a START in trying to compensate,
    recongize contributers no matter their job function in the field.
    
     I too shall say thank you when I receive my 250. Maybe next time it
    will be more.
    
    -Mike Z.

    re .7
    
    Hey Mr. Lennard, if you think it's a joke, why don't you mail me your
    $250 check?  I wouldn't want you to have to go through the embarassment
    of cashing it.
    
    Larry

       One person's 'joke' is another person's car payment! It'll be a real
    shame if they limit this to the field.
                                         Denny

    
    If Digital wanted to give me a $100 bonus, I'd be more than happy to
    take it.  Having worked previously for a company where the bonus was
    usually $25, $250 looks real good....especially if it's US area and not
    just US field.
    
    Anyone that doesn't want their $250, I'll be glad to take it off your
    hands.
    

    
    "Z" as you call him, probably got the idea from Europe where some
    countries implemented a bonus for Company performance last year.
    
    Unlike the US proposal, it is a Percentage of salary, which is 
    different, depending on by how much the forecast Budget is exceeded.
    
    Whether it pays out remains to be seen, as we have not got to end of
    year yet.

From the sales support people I know, working an extra 10 hours/week for 3/4
of the year (~38 weeks), is not unusual.  If you work out the $/hour of
the bonus, you discover that the sales support person has worked 380 hours
at an hourly rate of $.66.

I do agree with others that it is a step in the right direction.  I also think
that it is good that it is cash, rather than say dinner at a fancy restaurant,
as this allows the employee to us it in a way that will maximize their
enjoyment of the award.

Bob

And if we don't make the budget, management can then say, "Yeah, we tried that 
in '91 and it didn't work, so we won't do it again."

Low risk if we make the numbers, "solid justification" for not doing it again 
if we don't make the numbers.

Cynic

    This company really suffers from not accepting the inevitable
    because it clings to outmoded maxims too long and then at the point
    of no return hurriedly tries to move into implementation.
    
    An example of this is downsizing. The digital "does't make people 
    redundant" Tabbo resulted in a confused, rushed and late implemenation
    of what could have been predicted (and probaly was) to be an inevitable
    course of action which would have had to be taken at some point.. 
    Earlier acceptance would have lead to better planning and less pain..
    
    The Digital "Doesn't pay bonuses..it pays for performance" belief
    is entering a similar pathway.. All over the world groups are getting
    around this in their own way... But not in a consistent way..
    
    Statements like "This is a first, One step at a time etc" say its not
    politic to do this corporate wide yet. Its hasn't yet been accepted by
    the executive etc...But at some point politics will be overtaken by
    the reality of "Its already happened"
    
    I think it should be brought out into the open and we should come up
    with a Worldwide method for this type of compensation for very good
    reasons..
    
    Current metrics focus on the individual exclusively. IE pay for
    individual performance... Yet it is entirely possible for an individual
    to perform well at the expense of the overall group/company. This is
    not what was intended..Neither is it badness..People will behave the
    way they are measured.
    
    If you look at our company you will see many groups both geographical
    and functional who, to perform their role, need to interface with each
    other... Often their own metrics/reward system are in direct conflict.
    
    This results in what I believe is the greatest overhead cost to
    ourselves.. Boundary/interface overhead... Look at you own jobs how
    much effort do you place in the role of interfacing with other groups..
    
    Now multiply it across the entire worldwide company..
    
    Now I am not advocating we abandon individual reward.. It is very
    important to diffentiate between indivuals... What I am saying is that
    their is another dimension... Teamwork/community/company/family call it
    what you will... IE the generation of the spirit to work across
    boundaries and erode them for the good of all...Reduce this wasteful
    expense and increase profit..Worldwide !
    
    What I suggest is that apart from the individual salary review system,
    ALL other forms or recognition and reward be cancelled WORLDWIDE..
    
    They should be replaced with one single system that is applicable to all
    employees worldwide based on Profitability...
    
    Each period (month/quarter etc) EVERY employee should receive a payment
    of a fixed percentage of the profit that the WORLDWIDE company has
    made in that period.
    
    People should be encouraged to work across boundaries, reduce meetings,
    simplify process, behave internatioanlly, not to diffrentiate between
    revenue earning and overhead groups, recognize Engineering and
    manufacturing are part of the system etc.....
    
    Comments...
    
                                                         

		BZZZZZZT !  Wrong !

	The problem with this silliness is the same problem with
	most of the personnel and pay policies in Digital:

		Everyone gets rewarded, yet not everyone
		produced the positive reults !

	It's just a simple fact of life that some people produce
	a lot for the company, while others are on the Digital
	gravy train.  You know, the one where you can't get fired
	for not doing your job.....the one where you can do the
	minimum ( or less ) for a decade, and get steadily 
	promoted and raised....the one where the political
	movers and shakers get promoted, not the technical or
	other producer.

	How nice to be useless and have someone shower money
	on you for other peoples' efforts !

	Steve H

    re: .18
    
    I've always called it DECWelfare. I thought all this TFSO business
    was going to address these people? Obviously not as there are still
    many around. Too bad because we've lost a lot of good talent while
    holding onto the "gravy train" folks.
    
    Jim C.
    

    Re. Last two, I couldn't agree with you more. I have been here for many
    moons, I have seen a lot of people skating along, having a nice time.
    
    

re: .18-.20

What makes you think that the skaters would be proportionally excluded if
the usual management process was followed to determine who got selective
bonuses?  At least this way you know ALL the deserving people will get the
bonus. ;^)
								paul

    I actually think if the "bonus" is linked to Profitability then the
    "gravy train" people will have a hard time. This is becuse if you know
    as and individual every expense you see around you, every wasted
    resource, every pointless meeting, every questionable business trip is
    reducing YOUR potential income I think you will be very inclined to do
    something about it... You win ... the company wins..
    
    Or think of this way, if as a result of this scheme  the company
    reduces its expense and you increase your income is that better or
    worse than we have today... Yes a few people might benefit with due
    reason... but thats what individual reviews are about...If thats not
    working then sort out that problem but don't throw out the baby with
    the bath water.
    
    Peer pressure on this scale is a very powerfull and devisive tool,
    don't underestimate it.
                                                              

    As a rider to my last note.. Fixed bonuses are not a good idea.. they
    have to be linked to a % of profit.. In that way people can increase
    their compensation by srtiving to decrease expense and/or increase
    revenue... Fixed amounts don't achieve this motivation.

    To take the imagination a bit further... How about walking into any
    Dec site anywhere in the world and seeing a matrix display above the 
    entrance the door that says:-
    
    	Average worldwide Profit per employee today = $XXX
    
    Makes you think about what you do today to increase your lot and benefit
    the company which in turn benefits you in the future !!
    
    Chris

    I totally agree with .22 and others that link reward to results.  I
    would favor changing the salary formula to 90% of current pay with the
    last 10% factored by results.  No gain, you get the 10%, upward gets
    more, downward hurts.  Everybody sees the result every payday.  Stay
    with it for the long term, forget "programs".  Let peer pressure rule.  

    I was told long ago that the reason we don't have PROFIT SHARING (and
    that's what's being talked about here) is that we have a PENSION PLAN
    totally paid for by DEC. Of course,the PENSION PLAN was instituted in
    the days when there were really good profits and PROFIT SHARING would
    have cost too much. Maybe what's in store for us is a discontinuation
    of the PENSION PLAN and the start of PROFIT SHARING! Hmmm...just
    rambling and musing...no need for anyone to start worrying...what do
    *I* know,anyway?
    
    Ken

>    I was told long ago that the reason we don't have PROFIT SHARING (and
>    that's what's being talked about here) is that we have a PENSION PLAN
>    totally paid for by DEC. Of course,the PENSION PLAN was instituted in
>    the days when there were really good profits and PROFIT SHARING would
>    have cost too much. Maybe what's in store for us is a discontinuation
>    of the PENSION PLAN and the start of PROFIT SHARING! Hmmm...just
>    rambling and musing...no need for anyone to start worrying...what do
>    *I* know,anyway?
 
	Things are moving the other way here on these two items, they are 
	getting better for us.

	We used to have a pension scheme that we had to contribute 5.5% to.
	We did not have a bonus scheme.

	Now, we have a pension plan that, if we contribute, it is only 3%,
	with 2.5% being paid back to us (net .5%), for the same benefits that 
	we used to have to pay 5.5% for.

	We now have a bonus scheme too.

	Heather

    Ten thousand "mea culpas"! Yes,thank you for reminding me that we in
    the US are not alone.
    
    Ken

    re much earlier
    
    I think you will find that "US Area" does not include engineering. "US
    Area" is a subset of the worlwide field organization.
    
    gary