Misha Galperin, the executive vice-president and CEO of The Jewish Federation of Greater Washington, has sent out a message announcing an 8.5% salary reduction and a shortened work week.
The reason: "a likely 25% drop in our annual campaign and a corresponding reduction in cash to be collected by year’s end."
Why this approach: " I selected this approach in order to avoid large-scale layoffs and keep the fundamentals of Federation intact."
Here’s the full message:
Dear Colleagues:
At a staff meeting this morning, I announced that we are making a significant policy change: reducing staff salaries by about 8.5 % and modifying our work week from Monday through Friday, 9 am – 5 pm to Monday through Thursday, 8:30 am – 5:30 pm. This change affects all but essential personnel, a limited number of individuals responsible for reception, facility, security and information technology.
This change is being made in anticipation of significant allocations shortfalls emerging from a likely 25% drop in our annual campaign and a corresponding reduction in cash to be collected by year’s end. I selected this approach in order to avoid large-scale layoffs and keep the fundamentals of Federation intact.
The 8.5% salary reduction and the 3 day furlough which will occur during Passover (3/29, 4/1 and 4/2) represent an overall salary reduction of approximately 10%. All of the managing directors and I join you in taking these salary cuts. Likewise, individuals who work part time will also experience a salary reduction.
I realize that a reduction of this magnitude will represent a hardship. I am very sorry to take any action that can hurt any individual or the overall teamwork that is so crucial to our success. Sadly, there was no other way to realize material savings without cutting at the heart of Federation or impacting individual staff members to an even greater degree.
Please note the two attachments to this email, a sheet designed to anticipate your questions and provide answers to them, and a sheet acknowledging this policy change. Please return the second attachment to Alison Mershon by close of business on Friday, August 21, 2009.
I know that this is an uneasy time and can only encourage you to consult Alison, your managing director, or me with any questions.
Thank you, as always, for your teamwork and professionalism.
Misha
