IBM launches first-ever start-up accelerator
Layoffs and reduced perks are the order of the day as high tech companies streamline.
ECI Telecom Ltd., Freescale Semiconductor Israel Ltd., and Texas Instruments Israel Ltd. are among the companies that have recently announced layoffs, and they are not alone. 2012 is shaping up to be a very difficult year for high tech, with hundreds of employees fired and many more worried out their careers.
What happens to the employees who escape the axe and keep their jobs? According to a survey for "Globes" by Oketz Systems Ltd., these employees are facing worse job conditions. Employees working in small high-tech companies are having the worst of it. An important benefit - employer participation in employee meals - has been reduced from 47.3% in 2011 to 39.6% in 2012.
Weak business results are also forcing companies to reduce bonuses for employees who meet their targets. The survey found that 47.1% of companies are paying bonuses, 18.2% fewer than in 2011.
The survey covered 300 companies with 14,358 employees altogether.
"There is no doubt that benefits for high-tech employees are an integral part of their basic job terms," says Oketz Systems co-CEO Ami Bergman. "Despite the understanding shown by some employees, this is reducing their motivation and affecting their productivity."
Bergman advises high-tech companies to work closely with their employees in setting streamlining measures and increasing employees' involvement in management processes. "Instead of taking unilateral decisions, establishing joint employer-employee streamlining committees creates a greater commitment by both management and employees to the plan, maximizing the savings achieved while greatly reducing dissatisfaction," he says.
Oketz also found that small businesses are struggling to finance events and parties for employees. Only 16.4% of companies continue to celebrate in 2012, down from 49.5% in 2011. Employer participation in the financing of summer camps and after-school activities of employees' children has also been slashed: only 8.3% of small businesses budget these activities, down from 41.4% in 2011.
The deterioration in employee conditions also affects mid-sized businesses. The proportion of mid-sized business that partly cover employees' meals fell from 73.1% in 2011 to 63.8% in 2012, and 30% mid-sized business no longer pay bonuses to employees who meet their targets.
At big companies, 88.2% of companies partly cover employees' meals, down from 95.9% in 2011, and more than a quarter of companies do not pay bonuses to employees who meet their targets. Over 15% of companies have reduced financing for events for employee events.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
You comment was recieved and soon will be published.
Thank you for posting your comment, which will be reviewed for publication.
Load more comments
Alpha Zone in Petah Tikva will focus on big data, cloud computing and more.
Cyber security co Sentinel Labs raises $12m
It is the only company offering protection on Windows, Mac OSX and Android.
Microsoft chooses WEB3 as local digital media partner
WEB3’s clients include Cellcom, Tnuva, El Al, and Strauss.
Kaltura aims to be world's biggest video technology co
CEO Ron Yekutiel: The idea is to combine Wikipedia with YouTube.
Marvell Technology firing 200 in Israel
The company is firing 15% of its 1,300 employees in the country.
Amazon, Google, Microsoft battle to host developers
The Internet giants want to attract developers to build apps on their cloud-computing infrastructures.
Amdocs CEO: We strive for 5% annual growth
Eli Gelman fears complacency as the company expands in emerging markets.
Intel Israel development center to remain vital
Intel Israel president Mooly Eden tells "Globes" that Israel remains central to the chip company's plans.
SuperCom share price skyrockets 920%
SuperCom CEO Arie Trabelsi tells "Globes" how he has turned around the identity solutions company.
IMI enters cyber security arena
As privatization approaches, Israel Military Industries bets on a market with enormous growth potential.
Wanted: Arts majors for high-tech
Technology companies are looking for creativity, flexibility, and the ability to think outside the box.
2013 boom year for Israeli high-tech
In the first half of the year, there was a 52% rise in demand for mobile and web developers, and salaries are up as well.
CyberArk reboots network security
CEO Udi Mokady: Media reports on electronic surveillance make explaining our product unnecessary.
Architect Eli Attia: Google stole my life's work
Eli Attia has developed an innovative building design and construction concept that Google sees generating $120 billion annually.