Ray August to lead a new independent insurance software company. London underwriting market will be a major focus.
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@1c8+1jhk0jta7 There was no salary adjustment on our team. We all got £1000 regardless of current rate or performance. It just sends the message that salary is not linked to performance, or skills set and you'll never have your compensation corrected in DXC. The company is doomed. It's hard to decide which way to go - get out, or take the money and coast into retirement. It's all very stressful and demoralising. PM's scream that we need to meet a deadline. For what purpose? DXC took all sense of personal pride! When it's done we either get another pointless project or redundancy. And they wonder why it's being dragged out as long as possible.
Yes, they get COLA, we don't.
I'd say over the duration of this strategy employee pay is down about 50%.
If you said maybe a third of the employees hadn't left and been replaced with market rate noobs (although it's going to be over time with people scattered along the no raises for years journey).
Employee pay is somewhere between 30%and 40% of DXC's outlays.
one third of the thirty percent money spent on salaries is to underpaid employeesis... Ten percent.
Those ten percent of the salaries are fifty percent cheaper than they should be...
It's five percent of revenue. Instant margin, no effort by the "leadership" to do anything clever.
Obviously there is a hidden cost in that eventually your staff lose the will to work and or leave for better money... But that's a slope off that's measured in years.
Unfortunately it's also something that's hard to get back from after a couple of years too.
The market is used to dxc's margins and won't be happy if suddenly you knock ten percent off to adjust staff pay back to where it should be.
So you are stuck on the elevator to he-l even if you want to get off (not convinced they do want to get off but just saying)
The strategy appears to be carry on and hope something else changes before they hit the ground.
How does this not work out for the company. Every year they increase the rate card prices for staff to the clients by inflation plus. The amount they offer to employees has been maybe 5% across 10 years if your lucky. And they wonder why nobody gives a stuff if DXC does well. There's nobody left who's actually working in DXC's interest. Some of them think they are, but those people are incompetent.
"don't worry they still haven't been awarding any pay increases for years either."
yes because they want the books to look as good as they possibly can.
That "profitable" margin you see there? That's everyone's missing raises.
The same is largely true across the board with DXC - the margin expansion (the only way in which DXC has improved over time) is driven by your raises.
they tried and no one wants it
Benne Dosai has been saying this ever since he landed here.
They may have been bigging it up for years, but don't worry they still haven't been awarding any pay increases for years either. Even the sections of DXC that do well get the same treatment.
What's changed? They've been bigging it up at every earnings call for ages now
Old news. Next please.
Well they said it was going to be... Spun into a wholly owned subsidiary and see if anyone wants to buy it