And the pendulum swings the other way. WFH is now better.
https://www.theregister.co.uk/2020/04/21/ibm_q1_fy2020_coronavirus/
12 replies (most recent on top)
The people in those shanty towns never move far from where they've grown up.
Their families all live in the same area, and most are just afraid to leave the coop.
IBM knew most would not be moving away for the bigger and better deal no matter how bad.
In the CICs in shanty towns, entry level hires are paid abysmally low. I think it’s fair for their level of education and location.
Entry level SWE, consulting, and sales salaries are in the 6 figures range. By the time they hit Band 7, they are out earning most old timers who are B9 and below.
@xsi is right on salary. A rhythm was making avg 36k and a blues was making avg 43k. Now this was GTS In Dubuque. You see it has to do with location. They are not going to pay high salaries in small towns like Dubuque.
@1imx they hire, yet can’t staff college grads because of the requirement in GBS to have all work sent to India. I have had to go to GM level to get approval for one local grad to be staffed on a project. Unacceptable. So with no work plus no pay raises or bonuses, college grads leave within 2 years.
@icn
GBS is paying that kind of money yet IBM is in last place in all categories, now we know why.
@wid in GBS we pay college grads above $100K total comp and MBAs are around $180K total comp. New hires now get equity and huge sign on bonuses. SWE new hires salaries match Google and Microsoft. I know of several cases in which IBM has matched. Cheap labor is only achieved by offshoring. Definitely not by college hires.
Executives have been forcing office attendance for too long. They will never go back to WFH on any consistent basis. The executives haven’t changed.
Where are your seeing college grads in IBM making 36-48k a year? In my location they are making in the mid 80s. Where IBM is saving by having the younger workers replace the older ones is, vacation time, 401k matching $, health care and some salary. But they are not cutting the salary in half.
I believe those hubs will be dumped. The savings with wfh is huge, plus the incentives IBM received to setup shop in those shanty towns is long gone. Why pay for office space nobody uses? Makes 0 sense.
College grads are not getting paid 36K-48K. Increase that by 80K-100K and you’ll get their salary range. It has nothing to do with cost and everything to do with culture change.
The main reason ... was to reduce head count of older workers
IBM now is your big chance to get rid of the older workers - make everyone come back to work! If your state does not allow it, set up a hub in a state that does.
The main reason that IBM set up the hubs was to reduce head count of older workers, which in turn reduced higher salary employees. IBM understood that older workers, along with their spouses and children were entrenched in their neighborhoods and towns. Moving to a new location (i.e. Dubuque ) would not be practical with no promise of job security. If your position moved to one of these hubs and you decided to not move as well, you were considered to have voluntarily resign.
IBM would simply replace you with a recent college grad making 36,000 - 48,000 per year.