Happy Boxing Day!

Did you know that Boxing Day was originally a Middle Ages holiday where the less fortunate received a ” Christmas box” the day after Christmas?  And did you know that employees were included in receiving one of these boxes? 

Running the Circuit, again…                                                                                    OK, remember Circuit City, the company that canned 3,400 of their most experienced workers because they were too expensive, and then offered to rehire them at a lower wage?  The same Circuit City who has seen their stock price slide in the last year from a high of $22 to their current $5, an impressive drop of 77% and nearly the lowest in a year?  The same Circuit City who posted a $200 million dollar loss in the last 3 months (that’s $200,000,000, lots of zero’s).  That’s losing 2.2 million bucks per day.  If you’re open 12 hours a day, that’s almost $200,000 an hour.  Wow. 

Anyway…

Circuit City just provided what the Washington Post called “retention bonuses” by approving cash incentives to retain its top leadership talent. Executive vice presidents could claim $1 million and senior vice presidents could claim $600,000 if they stay with the company until 2011. Fifty percent (50%) of the award will be paid in January 1, 2009, an additional 33% the next year, and the remaining 17% in 2011. Vice presidents, directors, and store directors are also eligible for awards.

Just so you know, the Chairman and CEO Philip Schoonover is not participating in the plan. However, he is eligible for a stock award valued at $2.9 million if he stays with Circuit City until January 2011. 

And these are the people they want to keep, right?  I hope they know how to sell a flat screen.

Harder and harder to find and keep labor… According to a newly released survey, nearly 90% of employers plan to expand or keep constant their current workforce levels in the first quarter of 2008.  The survey provided other insights:

• 40% of companies currently have positions open because they can’t find qualified candidates
• Slightly more than six in ten believe the quality of the job candidates is the same as last year, slightly more than one quarter believe they are worse, and 1 in 10 think they are better this year than last year

Companies trying to keep their current staff while looking for replacements and additions while the quality of those available decreasing.  Makes you want to do a better job of ensuring your current employees are engaged in your organization.  Employees stay because they are engaged… they aren’t engaged because they stay.