I worked for Dell for over two years. I knew they were violating numerous labor laws. First level management just enforced policies that executive level managers made. These were just kids straight out of college who usually had never worked anywhere else or just one other company for a very short time and had no clue how to run a business and what laws they were breaking.
If an employee had the audacity to question management on their illegal labor law actions you were accused of not being able to deal with ambiguity and told that you worked in a right-to-work state. So people shut up and did what they had to do to survive financially. Once someone had had enough abuse, they quit. That is why Dell has such an atrociously high turn-over rate.
Dell does not mind spending money on training new employees over and over and over again just as long as they do not pay their existing employees above a certain level. Maybe there is some kind of tax break for training that is better than paying compensation. If not, then there is no logic to their actions other than they don't want to see employees making more money than they are.
I would venture to say, on an average, Dell pays their sales people less than .04% in salary, overtime and commission of what is sold by those employees. Industry average runs around 10%. I actually did an analysis once of how Dell set quotas which was quite enlightening. I shared it with one employee and the next thing I knew, HR was having meetings with everyone about it.
Dell's whole sales compensation plan (which changes continually) is designed to force people to work overtime to achieve their quotas. Seven layers of management between the CEO and the employees require alot of capital to line those very deep pockets. So if they paid you less than the legal amount of overtime pay, this paid for their bonuses. OpEx was a big buzz word around there. You were constantly drilled on keeping the operating expense down.
Management also used quotas to discriminate against individuals who were making too much money. If increasing the quotas did not work, then Dell "promoted" the individual to another position with the intent of paying less overall compensation. Of course, these were the older and more tenured employees.
I watched Dell do away with a whole sales department once because the sales people were all making 200% of their quota (which is where Dell caps it). Dell said they did not need that department anymore. Within six months Dell had hired new people off of the streets to replace the individuals they said they did not need.
I am just glad to see people finally standing up for themselves. Dell is nothing without their employees. Too bad the good old boy network does not see that. SEC, FTC, NY AG, and two class action lawsuits; I guess those 2 X4's just aren't big enough to get their attention.
In reply to: "Dell faces class action lawsuit from workers"
December 11, 2008
0 replies