Sources inform “Globes” that Israeli billing firm Amdocs (NYSE: DOX) will grant its employees a raise this July. Amdocs usually raises salaries in July, but the company crisis prevented a raise in July 2002.
Amdocs today announced that it would implement a new employee promotion plan in the coming months. Management noted that the plan, which was designed to adjust employee and executive promotion to Amdocs’s global development, would apply to the entire company, with an emphasis on expanding professional promotion opportunities.
The new plan includes both the management and the professional level. On the professional level, software engineers will be offered promotion on the basis of their know-how, experience, and expertise. A promotion horizon, personal responsibility for every position, and precise criteria for every promotion path will be outlined. Amdocs has hitherto had only one promotion route, based on the managerial parameter.
Amdocs also announced a revision of its policy in the following areas: salaries, promotion, bonuses, and options. Salary raises will be based on personal performance, according to the salary norms in each of the company’s regions. Bonuses will be granted for achieving targets. Management is reconsidering the company options policy, which will be reduced, in accordance with current global standards prevailing in the Amdocs’s markets.
Amdocs stated that the new promotion routes and updated salary policy were designed to complement its general adjustment to the new market conditions, while consolidating the company’s progress in managing customers with worldwide business. This adjustment included a new business model, and the adoption of a product-oriented business and marketing strategy. The company structure was adapted by dividing its business into two sections: an offering section, responsible for developing and marketing its products, and a delivery section, responsible for managing customer relations and day-to-day support.
Amdocs stressed that its salary decisions would be based on the company’s financial results. The company pointed out that despite its successful adjustment to the new market conditions in recent quarters, the markets for Amdocs’s core business were still showing no signs of regular substantial growth. This situation is forcing Amdocs to remain very cautious, while regularly reviewing the structure and amount of its current expenses.
Published by Globes [online] - www.globes.co.il - on May 28, 2003