HP is raising salary levels back to where they were pre-financial crisis, new CEO Leo Apotheker just told employees.
Here’s what one employee just told us:
We heard from Leo today. He’s basically giving back the pay cuts Hurd put in place last year, returning the 401-(k) to a fixed (rather than discretionary) match, increasing funding for employee awards and putting some money out there for raises (not for everyone, but more than was there). Also will be proposing an ESPP where employees will be able to purchase stock at a small discount (not what it used to be but better than having to pay cost as we do today).
He said he was going to listen to employees, people bombarded him with tough questions (his q&a with employees at various sites were put on the corporate portal), and lo and behold at about the first possibility he acts on that feedback. What a nice change.
The employee wrote back and added:
There’s definitely a more positive vibe and there were lots of happy ‘check this out’ or ‘you are not going to believe this’ exclamations when people found out. It’s about the first time in five years anything good has come our way. The best thing is that, when confronted by his new employees, Leo said that things needed to change, and he’s followed up (in less than a month) and instituted the changes. I didn’t really expect to ever see that money back, at least not as long as Hurd was in charge.
What might be the most interesting thing is that it wasn’t Sr. HR VP Marcella “the axe” who made the announcement. Few tears would be shed if she found employment elsewhere. We always know that whenever an email from Marcella shows up in the inbox, it means we are about to lose something.
There’s been a clarification – the ‘regular’ salary increases will be in the FY11 cycle, not the current one. No complaints. The ex-EDS guys probably aren’t as happy; a lot of them had their salaries adjusted down after the acquisition in addition to the 5%-10% hit, and they won’t be getting that back. Don’t work around any of them.