Fast growing industry with highly profitable sales reps. Industry wide system vs company system. The Arrow can try as they may to keep the salespeople from interacting as W-2 jumpers, but the industry wide system that has developed will keep them from being successful in there fast paced, low company loyalty. It is very often that companies are worried about increasing the paying to their salespeople too fast, that the only option for a salesperson is to leave to another company to keep their salaries up to industry averages. What I don’t understand about the jumping, is if they being compensated properly, then there should be no incentive to jump to another company for purely financial reasons.
CEO is trying to micro manage general managers. Not possible in a company as large as they are now. Kaufman needs to move the HR function down several levels within the Regional VPs of the sales force. I would give the Regional VPs and the general managers more control over their people. It's not possible for the senior management team to know 4,000+ people personally, or know the leading salespeople in market areas that are outside the company. Without that ability, the CEO and HR department can not make an educated decision on the hiring and firing of people.
I think Kaufman is stuck in his idea of what a CEO does in a small company, and the system that he is trying to force the company's employees to function in, is strangling moral. He needs to re-focus his job on not being the HR manager and trust that the middle level managers he has hired can due the job of managing their employees. I think he feels that he has lost his grasp on the individual employee, and thought that EPR's would be the way for him to make sure the managers are doing everything right. Also, he seems to be very concerned that he received a 2 on his evaluation. Finally, sense implementing the EPR's, Operating Income has decreased every year.
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