Circuit City Fires 'Overpaid' Employees
My first reaction to this announcement was disbelief, followed (very quickly) by outrage. No company, in their right mind, fires the people who bring in the money.
Over the years, I have been through many acquisitions, mergers, and buyouts in Fortune 100 companies. Inevitably, 'heads will roll'. As a member of the Accounting department, I have watched those heads roll. And I can say - without reservation - they are almost never in the Sales department. Sales is a revenue generator - Accounting is overhead. In simple terms, SALES makes $$$$; every other department costs $$$$. (With the possible exception of the Collections department.)
Yes, sales people get fired when they consistently fail to meet their quotas. It actually happens quite frequently. But . . . not in the way that Circuit City is firing sales people. "Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale,'' Colin McGranahan, an analyst with Sanford Bernstein & Co., wrote in a note today.
There is nothing right (to my mind) and everything wrong about this situation.
Years ago I refused to shop at Target (and still do) because of their anti-union construction practices. Today, I choose to stop shopping at Circuit City for their poor treatment of valuable employees.
Over the years, I have been through many acquisitions, mergers, and buyouts in Fortune 100 companies. Inevitably, 'heads will roll'. As a member of the Accounting department, I have watched those heads roll. And I can say - without reservation - they are almost never in the Sales department. Sales is a revenue generator - Accounting is overhead. In simple terms, SALES makes $$$$; every other department costs $$$$. (With the possible exception of the Collections department.)
Yes, sales people get fired when they consistently fail to meet their quotas. It actually happens quite frequently. But . . . not in the way that Circuit City is firing sales people. "Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale,'' Colin McGranahan, an analyst with Sanford Bernstein & Co., wrote in a note today.
There is nothing right (to my mind) and everything wrong about this situation.
Years ago I refused to shop at Target (and still do) because of their anti-union construction practices. Today, I choose to stop shopping at Circuit City for their poor treatment of valuable employees.
posted by JMarkAfghans @ 5:13 AM
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