The company I work for has been in negotiations for almost a week on what the plan is for cost saving measures, while there are the ongoing challenges and expected fallout from the Covid-19 panpanic. While not a great situation, what I have been glad about thus far is the way the company has been handling the process and this, with a great deal of transparency and inclusion.
One of the reasons I chose to work for this company was the way it treats its people and there is no better time to observe this than a situation of economic corporate stress. It is a technical delivery company that works on a Software as a Service (SaaS) model, so lost or postponed sales now have a cumulative loss affect later that can't be regained. This puts a long-range expected suppression of earnings and as a startup that can be deadly.
As said though, there has been a lot of transparency and inclusion of employees in the process which is obviously more difficult to communicate, organize and reach decisions - but the decisions reached will be more aligned with the wishes of the people. Sound familiar? The other reason I chose this company was that the software itself is prime for blockchain integration once the businesses serviced start to make moves into the space.
Due to the streamlined nature of the company already, there isn't a great deal of fat to cut away from the organization to achieve the cost savings required, so it has to be done across multiple areas. I assume the first to likely go are the "luxury" items, which are the benefits we enjoy as employees, including things like recreation allowances and some of the in-office items. I think that the next will be a reduction in office space and more remote work, since we are doing that now anyway due to the conditions, so it is an easy sell.
What I am most glad about though is that there is a salary reduction option on the table, and while this is not ideal for me or likely anyone, the company is looking to reimburse the cut through stock allocations. I think this is a great proposal, as it means that the immediate sense of loss is softened by the issuance of shares and potentially if things go well, a higher evaluation later. From the company perspective, immediate savings can be made and they get the additional bonus of having employees own more of the company, something that they encourage under normal conditions as they know that ownership matters and affects productivity.
As you can probably see, this is something that I am interested in because it is starting to take the form of a distributed network like HIVE, where activity translates into a percentage ownership of the network itself. I like this idea and from a personal perspective, it would have the same affect on my interest and motivation as me buying into Steem previously - and now Hive - as well as increase my interest level in the operational structure.
Again, like most companies have done, it would be very easy to just layoff non-essential employees and let others pick up the slack, but instead, they are planning on diluting their ownership percentage by distributing ownership further through the organization and with the long-term potential looking good, this might be a lucrative deal for recipients - whilst still not being ideal as it cuts into immediate liquids.
While this hasn't been decided upon as one of the courses of actions yet, I think that if provided, it would be the option I go for as it feels very familiar, in the same way that 50% of my post rewards go automatically into HIVE POWER. This makes moving to liquids an active decision, not the default. Thinking that it is recommended to put a significant percentage of salary away into savings or investments anyway - this option isn't the worst.
The other benefit of this is that these times are hard an everyone in the company and what happens now and how it is handled is going to have effects on employee behavior and culture later, even when things recover. Having the transparency, the inclusive process and the buy-in rather than straight layoff will mean that the company could actually come out stronger post-threat, as people are still engaged and committed.
In many ways, it would be good if this happened more, where all employees of companies were able to trade income directly for part ownership of the company itself, and more employees actually did so. Yes, it opens for loss and increases risk, but perhaps then, people will think more about the companies they work for in the same way that owners of HIVE think about and get involved in the project. If people did this, knowledge and skill increases and the global investor class starts to widen considerably and over time, the spread of wealth shifts more widely and deeper through the communities.
People want wealth distribution, but in my opinion, that has to come through taking some risks by taking some ownership. If unwilling to take on the risk of an owner, it is hard to justify the distribution to non-owners. Earning a salary alone can only get people so far and it means that one is reliant week, fortnight or month after month on that salary, with no personal safety net, other than what the state provides.
While I have never bought shares in a company before as I felt that I never had enough to spare, under these conditions, I don't mind the trade of work for ownership - especially since I have been doing it for years on a blockchain already. Some options are better than others and I don't mind working my way in.
Taraz
[ Gen1: Hive ]
Check the terms of the equity offered. X years of vesting is normal but also make sure that the equity is still yours if you get made redundant before or want to leave before the equity has vested.
Yes, I will do. A few of my colleagues who have been here longer have been taking options in the past and have said that it should be okay. Once/if it happens though, I will make sure it is okay.
If vested, can I self-vote? :D
Most likely you will be able to. Assuming the equity does have voting rights. :D
That's absolutely true, the true worth of a company comes in these difficult times only. The few cost-cutting strategies can be taking a 30-50% cut for like 6 months so that the companies do not have to layoff anyone.
Personally, I am ok to take a pay cut than going into unemployment in such uncertain situations.
Uncertain times indeed. I can't afford a large cut or full layoff, as for me, there is no other avenue of income like 99% of other people working here, as I have a business - even though that is also getting hammered.
I think that should be an initiative :)
Sounds like a good thing. Ownership in the Company definitely will motivate people like never before
It would also make them think about what companies they work for.
Sounds like a great concept and the good thing is that the employees are involved in the decision making. Ownership is a great secret in life as once a person takes ownership, it also builds trust which is so important. If the company is prepared to offer ownership, it will build a loyal workforce.
That's why our charity is community owned and registered as such. Trust can work wonders and it was our main focus when we started the charity in 2000. (Registered in 2002) and still going because of the ownership.
Hope that your company will endure during this devastating period and that it will be successful in the future my friend!
Blessings!
Trust is very important and I think that spreading ownership helps build it in both directions and create stability, growth as well as a support network when needed.
Exactly and the guys will also put in more effort if they have shares in it.
Makes total sense to me and the right way to go.
Hope that the opportunity comes your way mate.
You really must be in a lucky company. That aspect of the way you love them because of the way the company treats it people. Not company does that
I have been meaning to ask - why have you changed your account?
It was a long story.
I have problems with the account with steem cleaners then and that was because of my ignorance about many things then. I did not know how the blockchain works and what should be given more important.
Then I was giving importance to just making the steem and forgetting about the relationship building aspect which did not even open my eyes to avoid spamming which lead me to have problems with steem cleaners and many more watchers account.
But now I have discover what should be given most important now on hive. I need to start afresh. On a good note and forget all my bad actions behind.
I hope you have noticed some changes in my actions right?
But wasn't your last account a reboot of another, because of steemcleaners then too ?
Which last account if you can be specific.
Yes but like I said, that was when I was in ignorance. So I was not that concerned with steem cleaners. Each time I get noticed of steem cleaners, I open another one and continue my ignorant pursue THEN.
Until my eyes opened. I have more than two accounts I have opened
I think this is part of the issue...
"I think this is part of the issue.."
I don't understand?
Show me your Tweets
Sounds like your company knows the best way to have a future. Looking after your employees is the start to getting them feeling invested in the company and thus more productive. Giving them an actual share and options in the decision making process goes that step further.
Lick my nuts.
Why should anyone forgive you when you repeatedly break the community rules by spamming people, then get for forgiveness BY SPAMMING PEOPLE, while still continuing to DISRESPECT THR COMMUNITY BY SPAMMING PEOPLE???
You want forgiveness?
STOP SPAMMING PEOPLE!!!
only then you may have actually deserved forgiveness.
Until then, you are no better than a husband who beats his wife, asks her forgiveness, then beats her again, repeating the cycle again and again and again and again.
GROW UP AND GAIN SOME DAMN RESPECT FOR PEOPLE.