If this oversized MLRP of 5-10% yearly which will extend in total over seven years is all about rooting out low performers, why isn’t the company simply laying off the bottom say 40% of the employees ? Our ranking is obviously flawless, fair and exact (it identified at once DW as the genius we all know he is) so why not finish this in one big sweep instead of spreading misery over seven years ?
But wait, we already had a big layoff just half a year ago, based on a highly improved and sophisticated assessment system, so why couldn’t we just get in one move where we need to be ?
Maybe we don’t really know where we need to be and we’re doing what any inept manager does: play if by the ear while cutting employees. Or maybe we need the flexibility to target specific employees and go around the law.
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Wrong, if the productivity loss is only 50% (require cheaper countries 2 person = 1 US employee), the cost saving for hiring someone with 1/4 of US salary will still be very appealing. US salary is already too expensive for just doing normal day-to-day oil and gas activities.
@jqe+1bvwcWWZ
If by support you mean they call someone in Houston to do the work, then put their name on it, then yes they support operations.
“ Offshoring will not stop until the standard of living in the lower cost countries is equivalent to the higher cost countries”.
What that survey doesn’t say is what RESULTS you get by offshoring. At least in many places at EM, we don’t assemble iPhones or such work, that can be shifted to the cheapest country.
The offshoring will stop exactly when the disaster caused by loss of expertise and quality will be easily measurable and will cause damage visible even in the God Pod. Most likely it will be too late to fix it, especially since EM’s favorite and only way of fixing mistakes is throwing big money at it… but we’re out of money.
Based on World Labor surveys, a US based employee costs five to seven times the cost of an employee in a developing country.
Offshoring of jobs from high cost countries such as USA and EU to lower cost countries where we have established Global Business Centers will continue. Offshoring will not stop until the standard of living in the lower cost countries is equivalent to the higher cost countries.
Just monitor the XOM press releases about headcount increases in our Global Business Centers around the world to see where the growth is in the corporation.
Average Monthly Net Salary (After Tax) (USD)
Argentina - $408 USD
USA - $3557 USD
Percentage Difference - 771%
Source: https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Argentina&country2=United+States
Everyone may remember that we have been offshoring jobs from high cost countries such as USA and EU to lower cost global business centers such. Argentina employs 1800 employees in our Buenos Aires Global Business Center and will continue to grow as additional work in the USA and EU are offshored.
Careers in Buenos Aires
Our Buenos Aires offices support an extensive portfolio of businesses across Europe, North and South America.
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Careers in Buenos Aires
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Covering nearly the entire southern half of South America, Argentina is one of the largest countries in the world. Its capital, Buenos Aires, is home to a diverse population of around 3 million people. This bustling metropolis is a top tourist destination, known for its unique combination of La--n and European influences, with Victorian architecture, tango bars and more.
In 2004, ExxonMobil established The Buenos Aires Global Business Center (GBC) in the Torre Boston Building in downtown Buenos Aires, and not long after, operations were expanded to our Docklands Building in Puerto Madero. Each of our offices was crafted to provide an open, collaborative and safe working environment, including mother’s rooms, workstations ergonomically tailored to each employee, and more.
Today, the BA GBC employs over 1,800 people. Some of our daily challenges include providing financial analysis support, data management for customers in South America and across the globe, managing supplier relationships, network engineering and technical support, and preparing and filing federal and state taxes.
https://corporate.exxonmobil.com/About-us/Careers/Featured-hiring-locations/Careers-in-Buenos-Aires
We’re looking for students, graduates and experienced professionals who are eager to take on these opportunities and more. Career fields may hire for include:
Controllers
Human Resources
Procurement
Information Technology
Tax
Post ID: @nwc+1bvwcWWZ Did hiring increase to match the increase in the number of people who would be NSId? This has nothing to do with performance and everything to do with cutting costs and shipping our jobs overseas. Our performance did it suddenly get worse once the economy did. They brought in an expat manager and supervisor to my team so that they can learn the rules and take our jobs back to their countries. That is a fact. They act as if it’s no big deal and we’ll just be reassigned a new role/team. When we all know that’s just a prerequisite to get NSId for poor RELATIVE performance and a long winded way to get rid of USA workers. Wake. Up.
@nwc+1bvwcWWZ We are not going back into hiring mode. Wake up.
Im going to be wildly unpopular here but…. If you have an active hiring program, there will always be a % of hires that you got wrong….for whatever reason. It’s better (probably for them and the company) to cut them loose early. In the past, we were supposed to be doing that but rarely did.
That said, the model doesn’t work unless you are hiring (as OPs math points out). I’m sure the company knows that too….which may be a good sign. It probably means we are going back into hiring mode. To hire, we also need more competitive benefits or else we don’t attract talent. So maybe overly positive, I don’t know. If this is the message, it is a shame the company just doesn’t come out and say it.
Five years ago, in 2016, we were in the middle of the previous downturn and a huge number of people who were supposed to retire just wouldn’t, because they were waiting for better interest rates. The company started giving incentives for early retirement (how old fashioned that looks now!) and I’m sure there were plans for much more drastic measures if things continued that way. But the over 60 suddenly retired and the downturn eased. In 2018 and at least much of 2019 these plans were shelved.
So don’t conflate two different things. Of course, when the pandemic came, they just dusted off those plans and applied them, but that’s a different story. Oil companies have “special measures” in store for any downturn. EM just turned out to be the meanest of the bunch.
"sophisticated assessment system" = supervisor gets to pick annually who they personally dislike, then compile a file of everything negative about them, ignore positives...this will get the employee cut via PIP because PIP means the company will torture you if you do not leave
@mfw+1bvwcWWZ I have heard similar accounts but not the Napoleon’s March label. Wow. Was the plan for dropping the 401k called “let them eat cake”?
If it is not evident to all by now - this approach has been planned several years ago.
Methodically extended over time - oil dump/covid 2020 only accelerated helpfully.
In the highest levels it was jokingly called 'Napoleon's March' - 5 years ago.
We're heading back west now - and it's chilly.
Low performers were gone long ago. We are well into the high performing team members.
They may say, "you think it is a simple question to answer, but you all dont know how much of time and effort they have to put in to spread lies around, it is not simple to answer."
Takes time to train the replacements at BTC.
the axe gonna fall y'all
Hey Einstein, one big sweep is a great but costly idea. Now where are we going to get the money to do so? Have you seen our balance-sheet? Start with what was done to keep the dividends payment going, and you will find the answers you seek.
Nothing you nor anyone can do about it. Embrace the new culture!