We cut salaries today. Well, not me personally, but my company - and I'm part of it, so I guess that makes it "we." Believe it or not, I was proud and emotional when I read the announcement.
Our chairman (or rather his communications person) sent an email talking about all the cutbacks we've already made this past year and how much money we've saved. He went on to explain that it wasn't enough and that it was time for even tougher decisions in order to weather the current and anticipated economic storm. To avoid cutting jobs, we cut salaries instead.
He set an impressive tone by stating his 20% salary cut. C-level salaries were cut 12.5% and executive management 7.5%. The rest of us 5%. Hourly workers were not impacted, nor does it affect the salespeople. We're also losing our merit increases, bonuses and 401K match for at least the next year. Some question if the 401K part will ever come back.
The rest of the message went on to talk about our team spirit, skill and resilience and he hit a high note in emphasizing a one-for-all mentality and the continued focus on doing our very best to fulfill our customer promise. As I read the note, my eyes actually got a little misty - though that was probably just the biting British air as I was walking back to my hotel.
I'm okay with losing 5% of my salary and I'll even get over the bonus and 401K loss if it means my team and my many friends at the company will keep their jobs. Like many, I fear this announcement is the first in a series of moves that will only escalate as the economy further deteriorates. I guess only time will tell on that front.
Today was an impressive show of leadership. Decisive, thoughtful, and fair. I am proud of the decision and of my company. We claim to be people-focused and on this decision, we delivered.
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