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IBM and other employers select employees for layoff based on salary. This means the best employees, with the best performance reviews, and the longest experience are the ones that are let go. Although, perhaps, not intended as age discrimination, this is the result. It used to be that layoffs even in non-unionized companies were targeted at the newest employees and the poorest performing employees (perhaps because of lack of experience). These employees were not making as much money and were at the beginning of their careers. They usually did not have many obligations such as families, homes, etc., so were better able to ride out a period of unemployment, and better able to retrain for a different career. Today, it is the older, more experienced employee who has lots of obligations who is being targeted. With their level of salary as a result of their experience, they are less able to be re-trained, are compensated less as a percentage of their salary by unemployement insurance, and are saddled down with obligations. They have less time left before retirement to recover. Also, in the past, employees that were laid off, were hired back when conditions improved. Today, expensive employees are laid off at the same time as cheaper, younger employees are hired. And think of the blow to the self-esteem of a long time employee, who does have excellent job performance, and who has given to the company for so many years, to be treated this way. It hurts the morale of those that are left, and sure doesn’t encourage employees to want to give their best to the employers. This is a sad state of business today.
“of the blow to the self-esteem of a long time employee”…is this REALLY the job of an employer?? I want the decision made that is in the best onterest of the company I own stocks. Every company will go through some sort of decidion process…many times the employees who have been there the longest are out of date with current technology and should be let go.
You didn’t include the full quote – “of the blow to the self-esteem of a long time employee, who does have EXCELLENT JOB PERFORMANCE” Granted employees who are out of date with current technology and WHO CAN’T or WON’T learn new technology should be on the list of those to go. The decision needs to be made based on PERFORMANCE, not how much the employee makes. Excellent employees are being let go. This is not to the company’s benefit. (Obviously, I own a lot of IBM stock too). It kills the morale of those in the whole company. A company’s employees are its most important assets. IBM’s motto used to be “respect for the individual”. And yes, I think that is not at odds with a company’s desire to produce profits for he shareholder.