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Multinational firms saddled with huge people costs are considering downsizing their permanent workforce and hiring sub-contractors on a scale never seen before - presenting an "enormous" management task for HR.
..."There would be no buildings costs, no pensions and no healthcare costs, making huge savings," he said.
Outsourcing experts said employers from both the private and public sector were increasinglyusing the model as they looked to squeeze people costs post-recession.
Start digging deep into your wallets, people. Many won't have employer-subsidized health insurance anymore, and those plans are costly. The CBO estimates the cost of a basic coverage plan at 12-19% of your annual income for individuals earning $20,600+ and families of four earning $42,000+. Cost charts on page 29: http://www.cbo.gov/ftpdocs/107xx/doc...0-Premiums.pdf
"However, an IBM spokesman denied the firm was about to shrink its permanent workforce by three quarters in seven years.
He said: "The comments are without merit. This was pure speculation about future job movements without any basis in fact. In fact, the comments run counter to IBM's history of growing its global workforce over each of the last eight years.""
"However, an IBM spokesman denied the firm was about to shrink its permanent workforce by three quarters in seven years.
He said: "The comments are without merit. This was pure speculation about future job movements without any basis in fact. In fact, the comments run counter to IBM's history of growing its global workforce over each of the last eight years.""
Who do you think you should believe... Tim Ringo, head of IBM Human Capital Management?
Or an unnamed IBM spokesman?
Great business strategy. I guess Apple works that way. Not!
IBM has a flawed HR model. One reason why SAS gets 40,000 applications for 200 positions is their employee perks such as daycare and stability. SAS rarely lays off and tries desperately to transfer rather than binge and purge staff. Another reason IBM has to pay more for employees even during economic contractions is because people just don't feel like they're treated well. Companies like Apple and SAS should run with their model and retain top talent without having to pay as much as IBM would.
IBM has been laying off people forever. Definitely long time before the health care issue. They also offer their laid-off employees positions overseas in "local market rates". Great American company!
IBM has been laying off people forever. Definitely long time before the health care issue. They also offer their laid-off employees positions overseas in "local market rates". Great American company!
Actually, what happens is that when IBM hires (and they still do), they have to pay up the a** because many know the work environment sucks. For my field, they can't touch anyone for less than $150K, even here in NC.
Wow, just look at all the IBM love in this thread.
I'm not under the delusion than an employer owes me anything. IBM has the right to run its business the way it feels. Their business model is more along the lines of a disposable employee, and they must pay for that decision in terms of hiring employees. They must offer more compensation than other businesses in their field as a result.
I used to be an IBM employee and know for a fact that I was paid much more than a SAS employee with a similar title.
The OP is trying to make this about the new Health Care Reform plan. It's not. I retired in 2007 and had already been through several "reforms" to our company insurance plan. It was widespread at the time and growing worse with soaring health costs. IBM is doing what thousands of companies have been doing for years - trying to find ways to cope with an out of control health industry. It has nothing to do with Obama and Health Care Reform.
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