Ironic Financial Crisis – My crisis

 

Update:

Not sure if anyone read this but just wanted to update this ultra long post/rant.

  • After 2 years of no increases, HP started giving out increases again
  • the paycut that was reversed. those who signed got their money back.

 

I have been hearing about the financial crisis that has been making companies bankrupt, do some mass layoffs and other stuff just to keep them afloat. This financial crisis bug will soon bite me starting April 2009. This is what I call my Ironic Financial Crisis.Let me first talk about the company where I work, Hewlett-Packard. HP is one of the biggest companies here in the Philippines and from my point of view, one of the best company to go into when you are a fresh graduate because their starting pay is higher than the competition. I’m sure there are other companies with higher starting salaries for fresh grad than HP but you also have to consider the degree of difficulty in getting in them. In HP, it is easy enough to get in especially if you got someone who would refer you. Would you believe that you only need an interview and no more exams and other stuff like that?

I belong to HP services where we service clients who outsource their IT departments to us. HP offers a 24/7 global support so that means, we, as the support specialists, follow the sun of our clients that is why we have shifting. When I was hired, I was placed in EMEA shift so that means my shift was 3pm to 12am SGT. Due to the fact that we are working late, we are getting compensated for those “extra hours” worked. Those on the NLA (north and latin america) shift gets more compensation due to their shift (11pm to 7am SGT). I was happy because of this. I felt “rich” in a way due to my base salary and the compensation I get for being EMEA shift. Everything was going so well until…

No Salary Increase!

Last December 2008, there were a few newsletters from the higher ups of HP. They are talking about the revenues, results and other boring stuff. However, one email stood out from the rest. There will be no salary increases on the next fiscal year and perhaps the years after that until this recession has finished. I’m sure this came as a shock to all employees especially for those (ahem) who have been in HP for more than a year and are waiting for an increase in salary. I kept my cool and I just thought of the others who have lost their job. I simply said to myself, atleast I still have a job so why complain? Yet I still complain because I wanted an increase but of course, I don’t really cry out so loud. I also felt pity for the one who sent that bad news because everyone was like talking about that person with bad vibes. Just imagine saying to everyone that they don’t have a salary increase with a smiling face. Anyway, for more info on the HP salary freeze, just search for “HP salary freeze” in search engines.

I got promoted!

Also in December 2008, my manager approached me and offered me a higher role that my usual role. At first I was skeptical in accepting the role because I was happy in my current role but after consulting with friends, family, and everyone else. I accepted the role. Basically, I’m in 2nd level support now being promoted to 3rd level support. I will no longer be in emea shift but I have full control over my schedule. In terms of monetary compensation, my salary will still be the same and I will be forfeiting my compensation for being in Emea shift. If I look at the totals, I will be losing money after getting promoted to a new role.

One thing I’m wondering in the system is that, in HP, job promotion doesn’t necessarily mean an instant raise in salary. They would still need to measure your progress in your new role before you get a raise. I wonder why this is how the system works because, on this perspective, the reason why they offered you a new role or a higher role is that they believe in your capabilities. They know that you will be able to deliver the demands of that new role that is why they picked you over the rest so there should be no need to measure your progress if you are worthy of a salary increase right? From what I believe in, salary increase should go with job promotion instantly. However, that is not the case and since we have the HP salary freeze, it crushes my dream of ever getting one and it doesn’t end there…

Update: hmmm I heard of this word renumeration… maybe this is a company policy.. ^_^

Before Salary Freeze, now salary cuts.. what’s next?

I’m not sure if you have heard of it but if not, please try searching for “hp salary cuts”. This is the news the CEO of HP shared with us last February 2009. There will be salary cuts for everyone. I’m glad that our country doesn’t allow this rule so they don’t have a choice but to make us sign a waiver form first before chopping off our salary. Do you think I will sign that waiver form?

I’m still a noob at all this recession stuff so I’m wondering, what is HP doing will all these cost cutting stuff they are doing? The morale of the people is now going down yet they continue to do these cost cutting stuff. We know that sales have been going down basically everywhere so even HP’s sales got hit. However, we belong in HP services and as far as we know, we have simply been growing and have been a consistent income generator for HP so why do we have to suffer like the sales department? I still need to understand this stuff before I can continue writing…

However, let me just conclude my Ironic Financial Crisis… It boils down to this, I got promoted yet my monthly compensation got demoted. Thank you. ^_^

Update 2: I’m not mad or anything. It is not HP’s fault that my total salary will go down with the promotion. If I were in Asia shift before, there would be no change in salary. I’m glad I wasn’t in NLA shift before I got promoted because since their compensation for NLA is much bigger than in EMEA, it would be painful! ^_^

13 thoughts on “Ironic Financial Crisis – My crisis

  1. like they say… contentment is the key to happiness! but still… the problem here is being an overworked employee with the same salary… and there is still the danger of cutting your salary… aaaawww… i guess you’ll just have to wait for that increase until further notice of your work progress…

    yatots last blog post..Hot Shot New Trailer, Casts, Synopsis, Information and Poster!

  2. Well if you’re not happy… You could always look for a job somewhere else that provides better pay or work opportunities. BUT given the current economic conditions I’d say that’s a long shot. Anyway, hang in there if you really like your job anyway. 😉

  3. Look on the bright side, Allen. You still have a job, you did get promoted, and HP hasn’t gone bankrupt. 🙂

  4. hang in there man…lalalala

  5. Like Ling said, you have to look at the bright side.

    btw, I tried to answer back the question you have asked for me but I couldn’t. There is something wrong with the reply button about nuffnang.

    Paul Us last blog post..Does spam work?

  6. […] by Allen Gurrea in Personal | Last week, I talked about my Ironic Financial Crisis on a sad note. However, this time, let me talk about something else. We had this training just this […]

  7. these companies are basically on survival mode so they probably just want to ride out the storm. too bad you had to get a promotion that entailed a reduction in your take home and then get a pay cut.

    i’m wondering, though, about what would have happened if you had not accepted the promotion. i personally would not have. the crucial aspect of getting promoted is of course the corresponding raise, right? we know full well that promotions mean more work so we might as well get paid better for it.

    another thing you can ask them is if the pay raise that they are not giving this year would be compensated a la retro pay when companies start making money again…

  8. just hang in there, allen! HP is a great company. just build a solid reputation and experience while waiting for this crisis to pass.

    cebloggers last blog post..Philippine Jobs For The Accountancy|Accounting Graduates

  9. this is not promotion. its called job rotation. you are doing a lateral move not a vertical move. being Level 3 doesnt mean high pay just having a different role. you will be a technical escalation (vertical) but paybond wise it is still lateral (sideways)

    • @myk, it was not what I was told when it was offered to me. I was told with this new role, there can be a reason to boost me up from entry to intermediate…

      but anyway, I was just playing around with my conclusion… if I wasn’t on emea/nla shift at the start, i wouldn’t have to see my paycheck drop … *cries*

  10. increase of pay comes from two things.. 1. yearly increase due to performance review 2. promotion due to tenure… and these two goes hand in hand in building you up to your paybond. entry– > intermediate>. expert etc.

    but this is jsut the money part. technical skill wise does not matter. you may be a master at support and process but until you prove that in your years of experience and performance it will not matter to hp.

    so far that is how i understand it. welcome to the real world my friend 😀

  11. wow! no yearly increase, no increase for a promotion? so forever stagnant pay? I have a friend who has an offer in hp and the HR told my friend that the have this performance bonus, bla bla… but in reality it’s not materializing?

    • yep for two years already. Best way to earn increase here is to work on NA shift. .. ah performance bonus, they have this also but it is a one time big time every year and it isn’t enough compared to the hardship you need to do to attain it.

Leave a Reply