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Mip Factor Announced
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<blockquote data-quote="UPSer in Florida" data-source="post: 130304"><p>This really doesn't make sense. A big increase in profits and a big decrease in MIP. The 15% of net profit was easy to understand. Now the factor is hidden and is difficult to understand on how it's determined. How do they decide the factor? What is the business rule they use? Make 6 elements and its a 3? Four and its a 2.4? Roll some dice? </p><p></p><p>Like someone said in another post, this will do much more harm than good. Short term thinking will give you bad long term results. </p><p></p><p>You really have to question on how this will change managment's thinking and expectations? Especially the supervisors working 12-15 hour days? They just took a pay cut of about $6k+ more. Or what about our young managers? Who will want to work these insane hours and be at the beckon call to make whatever service happen? In the end they will not be motivated to. UPS was all about each person wanting to make it happen for our customers every single day. For those who have been here for a while do you think that has changed?</p><p></p><p>If this continues, this will start to change the managment culture in a a bad way because at the end of the day, it will be the WIFM. The problem is the culture is in of need change but not this kind. MIP had a small but positive motivational impact on our managment team.</p><p></p><p>Why doesn't the organization really address the issue of upper mid-level management and higher not performing? Or move to a true meritocracy for bonuses and pay? You have too many people at this level making excuses instead of executing. </p><p></p><p>The partnership is one of the strongest pillars of the organization and they consistenty have been hammering that for the last several years. You can try to putty up the chipping but it won't be the same. It's a huge mistake that sends a wrong message to the entire organization.</p><p></p><p>The other question is why in the first place did they feel they needed to do this? That's the question everyone should be asking? Why? What is the short term gain and why? Why was this so necessary at this time? With everything supposedly looking good, why would the organization do this? It doesn't make sense does it? The six element reason is no reason or excuse for this and this is the question every one needs to be asking over and over. What is it they know that you do not know that forced them to make this change?</p><p></p><p>What will happen next year at this time? Does MIP go back to a 2.5? But then you'd see a significant large payroll and operating charge. Would that not affect the earnings per share negatively? So would the organization raise it back to the 2.5 level knowing it would have an adverse eps impact that Wall Street so dearly loves? I think not. I think you have just seen your new MIP base. Although I do remember in the mid 90's when it was around 1.</p><p></p><p>How many will leave because of this (maybe this was their intent). The best and brightest will be the first to think about it. The young ones will be the first to act on it. In the end in a few years if this continues, you will have dead wood in the management drifting all over the place. And it's pretty bad now with that from districts to the region to the managment committee.</p></blockquote><p></p>
[QUOTE="UPSer in Florida, post: 130304"] This really doesn't make sense. A big increase in profits and a big decrease in MIP. The 15% of net profit was easy to understand. Now the factor is hidden and is difficult to understand on how it's determined. How do they decide the factor? What is the business rule they use? Make 6 elements and its a 3? Four and its a 2.4? Roll some dice? Like someone said in another post, this will do much more harm than good. Short term thinking will give you bad long term results. You really have to question on how this will change managment's thinking and expectations? Especially the supervisors working 12-15 hour days? They just took a pay cut of about $6k+ more. Or what about our young managers? Who will want to work these insane hours and be at the beckon call to make whatever service happen? In the end they will not be motivated to. UPS was all about each person wanting to make it happen for our customers every single day. For those who have been here for a while do you think that has changed? If this continues, this will start to change the managment culture in a a bad way because at the end of the day, it will be the WIFM. The problem is the culture is in of need change but not this kind. MIP had a small but positive motivational impact on our managment team. Why doesn't the organization really address the issue of upper mid-level management and higher not performing? Or move to a true meritocracy for bonuses and pay? You have too many people at this level making excuses instead of executing. The partnership is one of the strongest pillars of the organization and they consistenty have been hammering that for the last several years. You can try to putty up the chipping but it won't be the same. It's a huge mistake that sends a wrong message to the entire organization. The other question is why in the first place did they feel they needed to do this? That's the question everyone should be asking? Why? What is the short term gain and why? Why was this so necessary at this time? With everything supposedly looking good, why would the organization do this? It doesn't make sense does it? The six element reason is no reason or excuse for this and this is the question every one needs to be asking over and over. What is it they know that you do not know that forced them to make this change? What will happen next year at this time? Does MIP go back to a 2.5? But then you'd see a significant large payroll and operating charge. Would that not affect the earnings per share negatively? So would the organization raise it back to the 2.5 level knowing it would have an adverse eps impact that Wall Street so dearly loves? I think not. I think you have just seen your new MIP base. Although I do remember in the mid 90's when it was around 1. How many will leave because of this (maybe this was their intent). The best and brightest will be the first to think about it. The young ones will be the first to act on it. In the end in a few years if this continues, you will have dead wood in the management drifting all over the place. And it's pretty bad now with that from districts to the region to the managment committee. [/QUOTE]
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