Join your fellow employees who are fighting for your benefits - Join the Alliance!

Retirees, Vendors, Contractors, Temps, and Active Employees are all eligible to become members of the Alliance.

• "Sucker or Suckee?" by "Dose of reality". Excerpts: Let's go to microeconomics class and talk about marginal utility functions, shall we?
  Employee 1 works their @$$ off, charging at 100%, working at 120% on projects, adding another few hundred hours on admin, proposal, practice development, mentoring, maybe some CBT courses etc. He is in the 2+ or 1 category and gets a 2% bonus at the end of the year.
  Employee 2 manages to work in some downtime, rarely works more than an 8 hour project day, avoids proposal work like the plague, and doesn't do any non-client work or non-essential administrative work. His real and charged utilization are both 80%. He gets a 2, borderline 3 rating, but is so valuable on the project he has job security. He gets a zero bonus.
  Let's say for argument's sake they are both band 8's and make 100,000 in base salary. Employee 1 receives $1,200 after tax. For that, he has to work an additional 800 hours. Now the mathematically inclined out there can easily see that the effective after-tax pay rate for that extra effort is $1.50 per hour. Get a job moonlighting as a waiter at a nice restaurant and you can make 50 times that. You'll find that your consulting skills translate very well into that kind of work. [...]
  Which employee is acting rationally? IBM encourages mediocrity with its compensation policies. Anyone that behaves as the soft non-financial motivations steer them (pride, management/peer pressure, unattainable promotion objectives, fear of termination etc.) in the face of this is irrational.
  The only way to achieve equitable treatment from IBM while you are here is to suck more out of them than they suck out of you. That means limiting how much they can get, and maximizing how much you get in skills and resume development. If you leave one of those objectives out, you will never reach parity vis a vis other career options.
• "All sellers?" by "wonderaboutibm". Full excerpt: The 2/18 posting on www.ibmemployee.com listed all the 2/1 stock sales of the IBM executives, due I think to their restricted-stock grants. Looking down the list, it appears that virtually all of those listed sold approximately one-third the number of shares they were issued on the same day. My guess is that 1/3 of their holdings was the maximum they could unload under the grant restrictions.
  Am I correct in assuming that our esteemed Mafia is selling all the stock they can, as quickly as they can? Not a good sign if true, but consistent with what is being said on this board.
• "Dose - absolutely right.." by "howard stern". Full excerpt: IBM's comp strategy is like a socialist mecca - there is little incentive to work hard and be a number 1 performer. IBM is a great place to be if you have no desire to work hard, achieve anything etc. If someone is motivated and has desires, goals they expect to be rewarded for their efforts! If IBM won't pay - then talented people will go elsewhere. This isn't hard to understand. UNLESS the goal is to piss everyone off and replace them with Sridhar from Bangalore on the H1 Visa plan...
• "A New Plateau for B5" by "Dose of reality". Excerpts: Again, your quote: "The fair comparison would be your current salary compared to someone who has recently joined IBM, or joined close to when you left"
  First of all, the fundamental and relevant question implicit in Midwestman's post is pay equity - both base and incentive. No one that works here cares how much we are offering new hires. His point about his increase was that his contributions were not being recognized here. If in fact new hires are coming in at comparable rates to those that he realized in his move (and that is a big “if”), it is no consolation to him, and obviously would have no influence on his decision process or assessment of our policies.
  Second, failure to recognize internal candidates worth at the same level as new hires is sheer stupidity, and fundamental to the asinine brinkmanship compensation policy we have, where we rely on inertia to keep people in the ranks, and fail to incentivize performance in the short term. If we would be willing to make quantum increases in offer salary versus prior year, we should spend those financial resources on internal, proven resources, and not give free agency bonuses to applicants with no job history.
  So much for the theory….now onto reality
  Third, IBM does not regrade and reband new offer salaries for positions in major increments every year. They are grounded in the overall salary structure of current staff. To suggest that there is a possibility that the change in offer salary versus several years ago will be significantly greater than the composite average salary increases that staff have received over the same period is ludicrous. If staff have not been rewarded in a manner that enables them to keep pace with their market value, then external candidate offers wouldn’t either. They move in virtual lock step. The common denominator to both of them is comp studies, which are not really studies here, they are ex post facto rationalizations that fit our overall budget requirements.
• "Better year for former 1's" by "midwestman". Full excerpt: Last year IBM BCS I was a 1. Received a whopping 7% bonus for the 100's of extra hours of leadership requirements, selling deals, marketing and etc. So I left. New employer's bonus was 25% for my effort in 2005. This was after a significant pay raise for leaving. No comparison. Also I like my new employer. All the theories around "pay-normalizing" the PwC acquisition have proven out over the last 3 years. IBM does not recognize high performers. Don't be surprised when you don't get your reward for extra effort.
• "The inside secrets" by "Dose of reality". Full excerpt: Outside of the normal advice you would get in any interview guide, if you want to increase your chances of getting an offer, here is the formula:
  1. Effusively praise any of the IBM-based toolsets that you can work into your interview
  2. Leave the impression that you are willing to wait a long time for the offer to come through
  3. Leave the impression that you don't care about a competitive salary, and your post-acceptance compensation expectations are really low.
  4. If you are in a technical interview, don't leave the impression that you understand business processes. Your interviewer will either feel threatened, or not understand anything that you say - both recipes for rejection.
  5. Show that you understand project planning, execution, risk mitigation, etc.
  We need project managers/leads that can fix project execution problems, slam in technology, favor IBM tools that we can peddle and make more profit from, will wait a while for a project to open up before getting an offer, and come cheap. Our recruiting slogan: "The many, the meek, the IBM geeks". Not quite up there with "The Few, The Proud, The marines" now is it
• "Sorry B5" by "Dose of reality". Excerpts: I’ve already explained the economics on this from a staff point of view in the “sucker or suckee” post in the “Bonus Amounts” thread. I’ve also explained it from the company’s perspective several times in the past. An extra 25% in utilization yields approximately $125,000 in profit for a solid band 8 resource. I’m happy to pay 20% of that increment to the staff to give him a real annual incentive to achieve it, or any pro-rated variation of that. That’s a 400% return on investment. There is a bonus payout contract zone that will optimize performance, and it is not 10% bonus for the top 2% of performers! At the latter level, it’s like a game of musical chairs with 50 players and 1 chair, with the prizes being a fraction of what you could get playing another game, and the opportunity to play again next year.
  As far as promotion to band 9, what exactly did you get for that except more responsibility and a higher billing rate??
• "A prediction" by "Dose of reality". Excerpts: There are three factors at play here (concerning variable pay)- all of them as soft as a baby's behind, and as arbitrary as OPEC production quotas.
  1. The bonus target - inflated to begin with, non-contractual, and subject to change with or without notice.
  2. The bonus pool - always a fraction of 100%, and frequently less than 50%. You’ll never know how it is formulated every year.
  3. Annual evaluation - which you appear to have done well with due to an extraordinary amount of work, but never a guarantee.
  At the end of the day, all you have to rely on is the goodwill of IBM and their need to maintain yours. If you don't yet understand after two years of working here, and with the information that has been provided on this forum, that the former is nonexistent, then you have a handicap in your skill set that no amount of training, practice, or client kudos will ever overcome.
  With regard to the latter, the only possible way that you will get any relief from your unmet expectations is if you are truly an irreplaceable leader in an ongoing project, and we believe that you are an imminent flight risk. You may get one of those rare retention bonuses. But then, you will be in the same position next year, no longer a favored son, and much less irreplaceable. If you are a top performer, why not go someplace where you will be rewarded like one without having to plead for it or jump through silly administrative hoops?!
• "BCS Bonus Issues and PDF/Promotion" by "Joe Dirt". Full excerpt: In the previous posts, B5GovCon said that he/she got a 1 with 90% utilization. Unless he/she closed some really big deals (~$4M), he/she should not have gotten a 1 on the PBC with only 90% utilization. I sat in a board and this type of stuff is the root of the problem with BCS. Retention is more the focus rather than rewarding performance. In the old days (BIS), a 1 performer was the .005% but now we give 1s to 20% of our band 6s to "keep them happy". This dilutes the rewards for the people that actually do the heavy lifting rather than the average lifting.
  I had a utilization of 120% last year, supported many “management efforts”, and closed deals but I was a 2+. Why?..Who knows but I suspect because I was leaving BCS for another part of IBM. Why give me $ when they can use my share for the overall retention plan? My old manager has not communicated my “reward” yet but I don’t have high hopes. I am now in an organization within IBM that actually does reward by tying performance to bonus.
  I too did the math a long time ago and even asked my old manager “why should I bust my hump as the rewards/metrics are not aligned to drive performance.” I did not really get an answer but rather an invite for a conference call to discuss the point I was trying to make. To me it was obvious and I think it was to my old boss as well but they have to push the party line. One of my other partners (good friend) always used to give me one of those looks when I used to bring these subjects up. As to say, “Yes we know but we have mortgages, wives, children, responsibilities, etc. so we have to stay in line.”
  All I can say is I am so happy since I left BCS and any person that stays is either caught in the position, too stupid to leave or too lazy as many other options exist. In regards to promotion, I too kept trying to get promoted as a L4 only to be told that I had to take the class first (which only certifies you to a L3). For two years I tried to get into the class only to be told that I had to cancel the class due to limited training $. I took the class last year only because I signed up for the final class of the year (as they made me move it from the beginning once again due to $). Management called me 25 days out of the class and told me to cancel it but I told them that after 30 days (per Global Campus Policy) you can cancel but you do not get the $ back so they had to let me go.
  I am now a L5 and certified but as you can see from above I got out since the logic was too strong. I think the whole PDF process is just a game to see how you handle paperwork, changing rules/requirements, and BS. This appears to be the strongest driver and sign if you are ready for promotion within BCS. Do you want to know the real kicker…we sold the PDF process to the US Air Force as a best practice….In concept, the PDF process does make logical sense and allows for growth management of personnel but only when it is implemented/managed correctly. I hope the AF implements the PDF process the correct way and not the way that we use it!
• "Old habits die hard" by "Dose of reality". Excerpts: When the money dried up four years ago, salaries came back down to earth, yet lemming-like job seekers continue to clamor to get in the door. In the meantime, firms like IBM no longer pay premium salaries or incentive compensation, have raised targets, and are still trying to get premium billing rates. The only way we can continue this is to lie to clients and job seekers alike. We tell the former that we have an elite work force, and we tell the latter that they will get 8% raises and 15% bonuses. Anyone with talent that continues to sign up for this is an ignorant fool. Any client that signs a contract has obviously not done an adequate EVC analysis. There are dozens of firms that have lower rates AND better quality resources. Here, they are paying for a Lexus and getting a Hyundai. The entire system is set up to perpetuate the Band C+ income and retirement plan. Everyone else is a loser.
  There are many industry IT/Process jobs that pay more than BCS. Companies are happy to take some of that 300% markup that they pay to BCS and give it to you. You don’t have to travel, you have career paths to C-Level jobs, and can work for a company that really believes that it is in their best interest to keep you happy. What are you waiting for?!
• "Dose, as requested" by "ey_ore". Excerpts: In response to your request of 3/7: "I was thinking that you would be the perfect man to come up with the top 10 list of ways that a BCS staff person could earn the equivalent of a 2% bonus outside of IBM."
  1. Perform at a 1 level at CapGemini. Life, of course, is not without risk. While roughly equivalent to BCS, there is a chance you’ll be RIF’d in Q4 in order to make the year so that CG can payout 4% to suckups they really like regardless of their performance.
  2. Buy a KrazyEights scratch-off lotto ticket per week for a year (higher risk adjusted EV than working you’re a$$ off over the same timeframe and betting on the firm taking care of you).
  3. Rent your attic to 12 H1-B’s from your local office…dependable cash flow after small investment in ventilation
  4. Mow lawns on the weekend. Of course, this requires that you actually be home long enough on the weekends to fire up the Lawn Boy and do the neighbor (I’m talking about the yard here. Which brings me to a more practical option …
  5. Gather up anything associated with recreation or leisure pursuits: skis, tennis gear, bikes, Frisbees, chaise lounges and hammocks, crochet mallets and balls, woodworking or fine arts equipment, jigsaw puzzles, weird colored Hawaiian shirts, children etc. Sell on eBay. Look, you leave on Monday, return on Friday, recover from jet lag and general work-related malaise all Saturday. Sunday you’re packing again for Monday. For a consultant, these trappings of normality are just unutilized assets that can be liquidated with no impact on your current quality of no life.
  6. Sell your blood. This would provide an incremental revenue stream as you're having the lifeblood sucked out of you right now for free. I was going to go with the escort service concept, but I thought the analogy to be too obvious.
  7. Buy my self-study course, “Making a Ton of Money at Home Accomplishing Nothing on the Internet.” The beauty of my program is that you can still accomplish absolutely nothing meaningful without the inconveniences of constant travel. Please follow the link to my website: www.deloittestush.fat
  8. Start your own undifferentiated, commodity technology consulting firm. Entry barriers are non-existent. And the performance requirements? A joke. You guys work for BCS, so I’m preaching to the choir here. Let’s not quibble about entry strategy, size of the market opportunity, blah blah blah. Do we need to know the diameter of Uranus to know it’s big? Bottom line: all you have to do is know how to do something better than Charlie-client and be willing to do it for him while he cultivates an aura of self-importance and works on his tan. Really, think about. Following that definition, you’re already about as differentiated as the Big X firms. Another upside is you’ll never need a watch again as Charlie will be giving you his anyways (make a note to sell your Breitling with the recreational stuff).
  9. Sell the treatment of that screenplay you’ve been working on the plane…”Broke Code Mumbai”. The story of two H1-B codeherders trapped in a world where Perl source matters but their CGI back-end can never be revealed .
  10. Marry someone who works for M/B/B. Retire.
• "Thanks - That certainly puts it in perspective" by "Dose of reality". Excerpts: What they all have in common:
  1. A fraction of the effort you have to put in vying for a 1 rating
  2. Needed variety in your schedule - an opportunity to become well-rounded as a person
  3. All have a much higher payoff than $1,200 after tax, and higher odds of success
  4. Many have upside - look at all the Ebay millionaires out there! You could build an empire to service the H1B housing market. Cash flow and Real estate appreciation. H1REIT.com - here we come!
  5. Some are absolutely risk free
  6. Many enable you to get in touch with that creative side that has been beaten down and suppressed for years

• Alliance@IBM: Attention IBM employees: IBM is blocking e-mail to and from the Alliance@IBM e-mail address endicottalliance@stny.rr.com from inside the company. Please send your job cut information and other correspondence from your home e-mail. You can also contact us the following ways: Phone 607 658 9285 or Fax 607 658 9283.
• To IBM Canada employees: Concerned about pension changes, declining benefits and working conditions? Please contact the e-mail below to find out how to get involved in working for a better future for IBM Canada employees. allianceibm@tngcanada.org
• This just in: 400 SSR's outsourced to Qualxserve. IBM says "Take it or leave it."
  • By April 10
  • No Severance
  • Employees can't look for another job in IBM
  • Employees can't talk to Media
  IBM's Announcement to employees: "QualxServ will assume field service delivery responsibility for primarily next day, high volume service products in the continental U.S., now performed by IBM Technical Support, such as IBM/Lenovo Mobile, Workstations, MPM Desktop, exchange printers, IBM Workgroup Printers and selected end user services (Service Code 44). Approximately 300 regular and 100 supplemental IBM employees who service these products will become employees of QualxServ under an arranged employment agreement. The selected employees have already been advised of the changes."
• Attorney Investigating Claim that IBM Targets Workers Who Take FMLA or Maternity Leave, or Women With Small Children, for Low Ratings and Layoff: Richard T. Seymour, a workers' rights attorney in Washington, D.C., is looking for information on whether IBM is getting rid of workers with families, by giving them PBC ratings of "3" if they take FMLA or maternity leave, or are women with small children. If you have information and are not a manager, please contact him by e-mail at rick@rickseymourlaw.net, or on his web site, www.rickseymourlaw.com.
• From the Job Cuts Status & Comments page:
  • Comment 3/10/06: So now SSR's get outsourced with no notice. And then told not to talk to the media! I think it is time ALL ssr's around the country went on a 1 day sick out. Screw Sam. -Anonymous-
  • Comment 3/10/06: I was one of the SSR's resourced yesterday. The reason? Because I took more of a percentage of laptop/pc calls than the rest of the group. Here's the kicker, I was the team lead for the group. I accepted this role to help further my career. One of the expectations was that I would help clean up intel calls that other SSR's were having trouble fixing. So, long hours and good technical skills qualify for a resource action?? I hope this is an eye opener for all. Don't give all your time to IBM, it doesn't count for anything! -Anonymous-
• From the General Visitor's Comment page:
  • Comment 3/6/06: We were told at the IBM East Fishkill Plant that there is no additional overtime allowed. And no pay raise in sight. Hearing that this will continue until the pension freeze is over as the final pension monthly payout is based on ones yearly gross salary during their last 5 years of productive employment service. There is a method to their madness and its not to benefit the IBM worker! -Anonymous-
  • Comment 3/9/06: In all my years in the I.T. industry i have never seen such inefficiency as i have under IBM. They split our workforce into their tower groups and now the people who were technically qualified to perform many tasks have been strictly limited to performing just a few tasks. This is a gross misuse of talents and abilities. It's so easy to see why IBM will no longer be competitive in the upcoming years. They are top heavy with do nothing managers who have no clues how to run a clients business. The word is out: IBM= idiots become managers. -Anonymous-
  • Comment 3/9/06: I spent eight years at Big Blue and had gone everywhere and did everything they wanted me to. Unfortunately, a job reduction in 2003 forced me out of Blue. Needless to say, they continue to churn people faster than the cell phone companies as they are pushing for lower wage US workers, college hires and outsource projects to India and cheap vendor contractors that spell disaster projects! Be careful. Thanks Mike
  • Comment 3/11/06: Working at Big Blue sucks. IBM managers forgot what Tom Watson created for a well managed company. IBM needs a well organized union with employee support and then clean up the mess Sam Palmisano created with corrupt, arrogant, and evil managers. IBM has become a smelly polluted cesspool sewer for crap incompetent managers. Be smart and support the Alliance and fight for a union. It is your only hope to turn Big Blue around to the great company it was under Tom Watson. -Anonymous-
  • Comment 3/11/06: I saw the headline on money.cnn.com that links into a WashTech.org article and says "Microsoft employees feel maligned: Microsofties allege that Redmond's performance review system is rigged." It sounds like Microsoft has been using IBM's Compensation and Review System. -Anonymous-
• Pension Comments page