What is so naive about wanting to make his company better? He thinks that his company will be a better company if his people have less to worry about in their day to day lives. I applaud the man. The important thing is it is coming from him, not as a government mandate. He is using his company's resources to make it a better place to work, which makes for a better company. Nothing naive here.
It's very nice of him. I wonder how long it lasts.
Big deal. We'll see if his company is around in a few more years.
What would it have to do either way with him taking a reasonable salary for himself and sharing more with the employees? You sound as tho you think it's a bad thing that will ultimately harm his company's long-term viability. Please explain.
What would it have to do either way with him taking a reasonable salary for himself and sharing more with the employees? You sound as tho you think it's a bad thing that will ultimately harm his company's long-term viability. Please explain.
So this guy gets some moral pangs, and significantly ups the salaries of all his employees to well above what the market value of their services are worth, because that what he's done there. He then lowers his pay to that of the lowest paid employee. What could be bad there?
But he's raised salaries more, in total dollars, than he's lowered his. This is going to cost the company a good chunk of change. It's going to significantly lower the amount of money the company has to actually run the company. When, not if, the company runs into a rough spot, will they have what they need to move over it, or will they find themselves short? Hit a minor recession, and they will find that they now have to let more people go than they otherwise would have, etc.
In my two businesses over the decades, I ran into these problems, and more. You try to give employees a reasonable, competitive salary, and whatever benefits your company size will allow. But if you are paying significantly more than market for help, you run into longer term problems. Salaries take up a certain percentage of sales. If you raise that too much, you are pinioned. It's almost impossible to then lower those salaries if you need to, so you fire people instead. Is this better? I don't think so. I agonized over letting people go.
This guy has done what seems to be a "good thing", but we'll see how long it lasts.
Comments
It's very nice of him. I wonder how long it lasts.
So this guy gets some moral pangs, and significantly ups the salaries of all his employees to well above what the market value of their services are worth, because that what he's done there. He then lowers his pay to that of the lowest paid employee. What could be bad there?
But he's raised salaries more, in total dollars, than he's lowered his. This is going to cost the company a good chunk of change. It's going to significantly lower the amount of money the company has to actually run the company. When, not if, the company runs into a rough spot, will they have what they need to move over it, or will they find themselves short? Hit a minor recession, and they will find that they now have to let more people go than they otherwise would have, etc.
In my two businesses over the decades, I ran into these problems, and more. You try to give employees a reasonable, competitive salary, and whatever benefits your company size will allow. But if you are paying significantly more than market for help, you run into longer term problems. Salaries take up a certain percentage of sales. If you raise that too much, you are pinioned. It's almost impossible to then lower those salaries if you need to, so you fire people instead. Is this better? I don't think so. I agonized over letting people go.
This guy has done what seems to be a "good thing", but we'll see how long it lasts.