IBM cuts salaries of skill laggards in US
BANGALORE: Keep learning new skills. IBM is sending out that message rather sternly. It has cut salaries by 10% of US employees who have not kept pace with emerging technologies and changing client requirements. Indian employees seem unaffected as of now.
As IBM ramps up its CAMS (cloud, analytics, mobile and social) play, its signaling to employees to build skills in these emerging technologies. An internal memo, published on the WRAL TechWire website, says: "While you spend part of your workweek on learning and development activities, you will receive 90% of your current base salary." The pay cut will extend through the 6-month training period.
"Every organization is significantly focusing upon great value proposition to their clients. Since talent is the most important asset of a technology company, a temporary paycheque dilution is for a cause, which if understood correctly may give an accelerated career pace with upgraded skills," said Syed Naqvi, senior VP in executive search firm Gilbert Tweed Associates.
Naqvi said organizations are realizing that employee skill sets are getting obsolete and they need to upgrade to capture the next wave of growth. "Companies also expect employees to bring their skin in the game than finding solace in merely working for a giant elephant. Some self-motivated employees seen as managers of the future take it upon themselves to upgrade their skills to the current market dynamics," he said.
Kris Lakshmikanth, CEO of HR consultancy firm Headhunters India, said IBM's move signals the company's efforts towards reskilling employees in hot skills that would prepare them to take on larger roles in the near future. "It's not about loyalty towards a particular company, but building a repository of new skills in demand. The salary cut could be a blip, but it could contribute to enhancing the paycheque down the line," he said.
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