RESEARCH TRIANGLE PARK – Cisco Systems Inc. is changing how its workers are being paid, and multiple media reports note that the change is coming as a response to concerns about rising prices and inflation.
According to the stories, Cisco will move portions of bonuses into the base salaries for workers starting in August, at the start of the company’s new fiscal year.
Bloomberg first reported the change Monday, citing the company’s chief people, policy, and purpose officer, Fran Katsoudas. According to Bloomberg, the decision from the company was made after an employee survey sent to employees.
Prices have increased on many consumer goods in the past year. By one measure, inflation reached 11.2% in the prior year. That’s among the reasons the company is making the change, Katsoudas told Bloomberg.
Other changes the company is making includes some experimentation with a four day work week and planned reductions of the firm’s real estate footprint, Bloomberg noted. Katsoudas told Bloomberg that “work is not a place you go, it’s a thing you do.”
“I want people to feel they have choice,” Katsoudas told Bloomberg.
The full Bloomberg story can be read online.
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