A weak stock market isn’t stopping buybacks. A report this week from S&P Capital IQ found that dividends and buybacks are on trend to hit a new high this year. And that’s after years of increases. For the past decade, S&P Capital IQ estimated that as much as $1 trillion had been spent by S&P 500 companies on buybacks and dividends.
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They're not investing in their employees in any meaningful way. Oh sure, there are programs and initiatives. But compare their budgets to their sponsoring company's stock buyback budget. See? They don't compare. And the employees see this.
And the employees also know that when stock buybacks and 'financial engineering' fail to sustain the price of their company's stock they will be punished first with layoffs.
That my friends is why employee engagement numbers aren't improving.
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Amen! The second shot (for my business) is the constant 'rebranding' effort...new building designs, interior designs, uniform design, etc...but never any investment in the people themselves - WHO CREATE THE BRAND! Ugh.
Posted by: JeffreySummers | November 03, 2015 at 03:41 AM