MSP Abandons Targeted Pay Cut Plan For Selected Employees
To navigate the coronavirus pandemic, an MSP and office equipment dealer in Oklahoma City initially asked some employees to take pay cuts in the amount equal to any government support they received. But the company has since abandoned that plan — conceding that it was an ill-advised strategy.
To understand the MSP’s initial thinking and revised thinking, it’s important to know the company’s overall compensation strategy. An extended statement from the company provides that context.
According to ImageNet Consulting President Pat Russell:
“As our company grapples with the massive business disruptions caused by this outbreak, our first concern was ensuring we could keep as many people as possible employed for as long as possible. We implemented a series of steps to cut costs, including asking our top executives to forego their pay and capping all salaries at $75,000,” Russell said.
“While there was uncertainty about the federal government response, we also asked a small group of employees to reduce their compensation by an amount equal to any government support they received,” he said. “Our intentions were to serve the greater good and protect our most vulnerable employees. However, we understand our plan was ill-advised. We have rescinded the potential program, and we apologize for any pain or confusion it caused.”
“Our company continues to investigate all government programs which will help us weather this unprecedented and difficult situation,” he said. “We remain committed to serving our customers and to protecting our employees’ health and safety.”
ImageNet declined further comment when reached by ChannelE2E.
The company is well-known in the IT solutions provider ecosystem, and is active on the M&A front. Key deals include acquiring Florida-based PC LAN Techs in February 2020 and fellow OKC company IT Guys in October 2019.