http://geniusone.com/blog/pay-what-you-do-not-have/ Since two decades author and leadership consultant Frank Kanu helps top managers and executives to improve success ratios and productivity. Fri, 09 Jan 2009 03:39:58 +0000 http://wordpress.org/?v=2.3.1 http://geniusone.com/blog/pay-what-you-do-not-have/#comment-2860 Coleen Davis Fri, 26 May 2006 03:22:50 +0000 http://geniusone.com/blog/pay-what-you-do-not-have/#comment-2860 When it is not abused, adversity and shared sacrifice - including give backs of salary and bonuses - can strengthen employee loyalty at all levels of an organization - from nonmanagement up through senior executives. If one works in a company that has a strong adherence to the "psychological contract" - basically this occurs by treating all employees fairly, communicating what is occurring, and administering the policy in a way that allows employees to retain their dignity - the give back can happen and can make the company stronger. This seemed to happen at AMR in the wake of 9/11. Don Carty and other senior executives gave up their entire base pay from 9/11 through the end of 2001. People really seemed to come together and to be willing to make such sacrifices. Why? The company had a history of being loyal. Many managers made far less that flight attendants and pilots (union employees). However, they were willing to make sacrifices because they were respected, empowered, and allowed to make a difference. Trust became an issue down the road because of inadequate communication on a special package for key executives.
If one works in a company that has a strong adherence to the
“psychological contract” - basically this occurs by treating all employees fairly, communicating what is occurring, and administering the policy in a way that allows employees to retain their dignity - the give back can happen and can make the company stronger.

This seemed to happen at AMR in the wake of 9/11. Don Carty and other senior executives gave up their entire base pay from 9/11 through the end of 2001. People really seemed to come together and to be willing to make such sacrifices. Why? The company had a history of being loyal. Many managers made far less that flight attendants and pilots (union employees). However, they were willing to make sacrifices because they were respected, empowered, and allowed to make a difference.

Trust became an issue down the road because of inadequate communication on a special package for key executives.
]]> http://geniusone.com/blog/pay-what-you-do-not-have/#comment-2847 panasianbiz Mon, 22 May 2006 12:52:07 +0000 http://geniusone.com/blog/pay-what-you-do-not-have/#comment-2847 Hi, I just wanted to say that you pose very interesting questions here. I think that I personally would give my bonus back if I were told that it could save the company. After all, from an employee's perspective, it would be better to have a job and salary to go back to then just one bonus. But I think you're right when you say that top-level executives wouldn't give back their bonuses. My answer my change if we were talking about a few million dollars rather than a few thousand! ]]>