Would You Take a Pay Cut to Learn New Skills?

IBM is reducing salaries while employees attend training programs

7 November 2014

As companies strive to stay competitive in a changing marketplace, IBM has made a proposal that received some backlash from its staff. The company is cutting by 10 percent the pay of certain workers during a six-month period in which they must participate in training programs of about one day a week. The programs focus on cloud and mobile computing and advanced data analysis.

While such a pay cut is unusual, workforce experts quoted in an article in The New York Times say this could become a trend in retraining employees rather than laying them off. An IBM spokesperson said the goal is to preserve jobs, but one worker called the move a “cost-cutting tactic disguised as a training program.” Although employees are given little choice but to participate, they may apply for other positions at IBM that match their present skill sets.

What do you think of IBM’s move to reduce pay as it retrains employees? Would you welcome it at your company, or would you look for a new job?

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