After a string of layoffs, though, it's not clear IBM came through on a deal it struck with state and local governments back in 2010, when Oregon unemployment was 10.6 percent. And following more than a year of inquiries, Oregon officials say they still can't figure out how many people work for the company – or if they can make IBM pay the money back, regardless. ...
The amount in question is relatively small, but the protracted uncertainty illustrates issues at play when governments tie financial incentives to employment figures and the complexities around economic development initiatives. IBM and other businesses who receive such tax deals appear to have little incentive to demonstrate they are complying with the job requirements. ...
Oregon, mired in the wreckage of the Great Recession, said it beat out North Carolina and Oklahoma for the jobs, lured with $350,000 in incentives to assist IBM with workforce training. That included a $100,000 forgivable loan program, tied to promises IBM would hire 600 people and retain 968 others.
If IBM met the hiring targets, the loan would become an outright grant. It's a setup Oregon commonly uses.
At least two rounds of layoffs followed, however, beginning in January 2014, amid a broad corporate restructuring. A second round of layoffs followed a year later. IBM's deal required it to retain at least 1,568 employees for two years, ending no later than June 2014. ...
An IBM spokesman referred questions about the Oregon operations and its subsidy back to the state, and declined even to say whether his company still owns Seterus. There is no mention of Seterus in IBM's recent regulatory filings, and the Seterus website makes no reference to IBM.
The company is "rebalancing skills and keeping our commitments to sites," according to a statement from IBM communications director Clint Roswell. It's part of a corporate overhaul the company announced last year, he said.
"Transformation on this scale requires IBM to continually remix skills - our clients expect no less as they look to IBM to help them take advantage of these innovations and new technologies," Roswell wrote. "In our rapidly changing services business, we are taking actions to deliver the innovations our clients need, while balancing efficiency, quality and cost." ...
This is at least the second layoff at Seterus' Beaverton office in the past year. It wasn't clear if IBM has fulfilled the employment commitments associated with its public subsidies. Business Oregon, the state economic development agency that oversees the assistance program, did not immediately respond to an inquiry seeking details.
The ECC is to include elected reps plucked from management and the wider workforce, who will gather around a negotiating table to thrash out “proposals for the organisation to meet its business needs”.
Lovely corporate speak for IBM wanting to squeeze out more profits than the business unit is currently able to.
The consultation process commences on 15 February and runs until the end of March. Sources told us one hundred plus employees are at risk of redundancy but this was unconfirmed at the time of writing. ...
A spokeswoman at IBM sent us this statement: "IBM can confirm that it plans to begin a consultation process with employee representative groups with a view to discussing business objectives in the UK."
Selected reader comments follow:
me as I have no choice in this, staff forums are pointless and we are not on a journey together you utter waste of humanity.
Just be HONEST. You want to get rid of x% of staff. It'd be easier if some went voluntarily but at the end of the day you will be sacking that x%, yes, let's call it what
If you've got skills, get out. You'll get a better job with more money. Turn your back on the misery and frustration. Go somewhere where you'll be appreciated and encouraged. A redundancy package is the only bonus anyone below exec level can expect from IBM now. Take it. There are plenty of jobs out there. As IBM piss off their customers, they leave and have to go somewhere. Other, more modern and dynamic companies are welcoming them with open arms.
Agreed about the management-speak on this; I have seen too many emails over the years on redundancies that literally do not contain a single negative word.
To revamp its performance review system, the HR department didn’t just pick a new system and implement it; it turned to its 380,000 employees in 170 countries to crowdsource the process. Gherson posted a message in July on Connections, IBM’s internal social media platform, asking employees to share their ideas for a new performance management system. The post received 75,000 views and 2,000 comments from employees. ...
The end result is a new app-based performance review system called Checkpoint, which goes live to IBM employees on Monday. ...
There is no single measure of an employee’s performance like before. “In the old system, there was one score. People [got] sort of obsessed by that,” Gherson said. “In the new system, there are five scores. It leads to a much richer, more balanced discussion.”
Selected reader comments regarding this article from Facebook's "Watching IBM" group follow:
Now, as Ms. Mayer prepares to announce a streamlining plan on Tuesday that is likely to involve even more job cuts, one former manager who lost his job is challenging the entire system as discriminatory and a violation of federal and California laws governing mass layoffs. ...
Under California law, the layoff of more than 50 employees within 30 days at a single location like Yahoo’s Sunnyvale headquarters requires an employer to give workers 60 days of advance notice. A similar federal law, known as the Worker Adjustment and Retraining Notification Act, requires advance notice for a layoff of 500 or more employees.
Yahoo has never provided such notices. But it did cut 1,100 employees over a period of months in late 2014 and early 2015, ostensibly for performance reasons. ...
Ms. Mayer has steadfastly refused to use the word “layoff” to describe the thousands of jobs eliminated since she joined the company. She even forbade her managers from uttering what she called “the L-word,” instructing them to use the term “remix” instead. ...
Mr. Anderson’s suit provides a peek inside Yahoo’s controversial quarterly performance review system, which Ms. Mayer adopted on the recommendation of McKinsey & Company, a management consulting company. ...
At Yahoo, the program, known internally as Q.P.R., has been a sore spot among managers and employees since it began. The court filing said that managers were forced to give poor rankings to a certain percentage of their team, regardless of actual performance. Ratings given by front-line managers were arbitrarily changed by higher-level executives who often had no direct knowledge of the employee’s work. And employees were never told their exact rating and had no effective avenue of appeal.
Advice to Management:
Advice to Management:
Pros: Work from home. They pay on time.
Cons: Most of these short reviews are from IBM. Read the longer ones which are accurate. There is no reason to go to IBM; they change strategy each year. Management of 25+ years are just angry. No raises, new boss every 6 months and 2016 will be no different. If you are on a career path, forget IBM; It does nothing on your resume anymore. No one cares if you do a good job and the managers are all pressured to micromanage their people. Moving from low value to high value products? Really, is cloud high value IBM? That train left the station and it's a two-legged race with AWS and MSFT. As far as analytics, others are eating IBM's lunch. Can't deliver projects; no support and the CEO gets raises for 15 declining quarters of growth; such a joke.
Advice to Management: Retire, go away. Your management style from the 90's doesn't work. The BOD is as much to blame for keeping this lame management team in place.
Pros: Some very, very smart people hidden in the cracks if you can find them, with candid advice and freely offered mentorship. Huge flexibility if you find the right project and play your cards right with the project management. Astonishingly, brand name remains relatively strong, although this may change over the next few years and is certainly no guarantee.
Cons: Executive suite very obviously does not care about employees, slashing perks and letting infrastructure languish while paying the CEO massive annual bonuses for horrible market performance.
Decisions banning common consulting perks, such as alternate travel, Uber as an approved taxi provider, are taken without employee input and can be reversed, but only after sustained, near-universal outcries, and marked increases in attrition.
Cool ideas out of Research division and Watson are brought to market before they're ready for enterprise application, and very basic MBA1 management ideas that would improve the company are rushed or diluted to death.
Tone-deaf evaluation system, often approved by entrenched management with little incentive to provide accurate feedback and no useful answers for very basic career development questions, such as "how do I improve for the next evaluation cycle?"
Entrenched management: without an up or out policy, there is incredible stagnation around the engagement manager level, where talent is particularly thin. Technical skills in basic software, such as Excel and PowerPoint, is incredibly limited at these levels, leading to dumb questions and poor estimates for delivery time frames. Generally speaking, good talent finds its way out, and bad talent falls upward, resulting in very, very spotty talent throughout.
Advice to Management: Listen to your employees, and improve the morale problem. Good ideas cannot be executed without good talent, and good talent won't stick around when executive decision makers cut compensation and perks while paying other companies to take revenue-producing divisions off our hands.
Pros: Flexibility. This is probably the only reason why a lot of people choose to stay in IBM. There is nothing else that would be considered as a "pro".
Cons: Promotions are not based on performance; instead it is based on how well you can brown nose your superior. Most things that you learn in the "accounting" unit of IBM have nothing to do with basic accounting. If you are looking to learn accounting, please think twice about coming here. All you do is repetitive data-entry work here. Something even a Secondary 5 graduate with no accounting skill would be able to do. Also, for medical you would still have to pay RM5 for every visit to the doctor.
Advice to Management: Please give opportunities to your employees who work hard but might be on the quieter side. These are the ones who would probably lead the best. Don't be fooled by people who talk loudly but it's all empty talk. Empty vessels make the loudest noise.
Pros: Possibilities are endless for training and access to people in many roles. Patent training and encouragement. Great mentors.
Cons: Cannot apply for other positions no matter what. Political performance reviews need to change to new method such as done at Accenture and other large corporations. IBM doesn't move people (doesn't allow sometimes) from dying areas to cutting edge areas so loyalty is questionable.
Advice to Management: Employees with very good performance ratings should be allowed to move to new positions. If employees have very good performance ratings, they should absolutely be allowed and encouraged to apply for new positions. IBM loses very dedicated and smart people with these practices.
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