Saturday, December 6, 2008

HP Reportedly Freezes Salaries - Pays for Performance

According to reports, HP dispatched the news in an email communique.

Bloomberg and the San Francisco Business Times report that HP is freezing salaries.

"We believe it is prudent and responsible to reduce costs where possible, including travel and event related expenses," said a company spokesman.

"That said, we remain committed to the principle of 'paying for performance'" She added. "High-performing employees will be rewarded and competitively compensated."

According to Bloomberg, HP will only hire workers for “revenue-generating positions,” reduce spending and limit travel to customer-related activities, all contained in an e-mail acquired by the news company.

Year end bonuses are still in play - and according to Silicon Valley/San Jose Business Journal, "The freeze will not apply in countries where they are illegal."

Predictable reaction around the net has been negative. One comment from Colombian.com

"...This is nothing more than a short-sighted effort to prop up corporate profits in a race to the economic bottom. It is a cycle that is not sustainable. It's economically better in the long run to have no profits and remain stable than to short your employees..." - Craig Williams : 12/6/08 7:42am---



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