Posted on 04/15/2015 9:20:39 AM PDT by SeekAndFind
Nah, man, you’re supposed to screw your workers...it’s the American Way.
It sure is honey. You'll be looking for a new job very soon.
I agree.
There was thread on Gravity yesterday. I posted a lot. I think this is a smart move for some companies (not all).
At Netflix, if they determine that an employee has done an adequate job — they fire that employee. Because adequate isn’t good enough. You have to be excellent, or you are out.
Now, you cannot do that if you hire and reward employees the way everyone else does. You have to make it a highly desirable place — you want people pounding on the doors begging for a job. Then, you hire superior people. And you keep them BECAUSE no one else will match their salary. You save on hiring, and training and accumulated job knowledge.
And you make it clear — absolutely no slacking. Everyone works hard. All the time. No excuses. If you come to a meeting unprepared, there is a problem.
A high minimum salary becomes a basis on which you hire only superior people and fire anyone who underperforms. It can be smart.
Also, some people perceive Gravity paying the same exact salary ($70,000) to everyone no matter what. That isn’t it at all. Junior positions start at $70,000 and then things go up. Excellence is rewarded.
So what is the motivation to work hard, to excel if the clerk is making as much as an upper level manager?
Because the welfare state has worked so well. (See 18-trillion dollar federal deficit)
It doesn’t matter what you pay - its what you get in return for what you pay that matters. But this will put a lot of pressure on the performance management system - you cannot afford deadwood with a premium pay position. My guess is also they will ‘outsource’ a lot of functions as well.
He is a little bit Japanese.
Nothing I can see wrong with a private company deciding to implement a minimum wage. The market will decide if it is a good idea. It’s forced minimum wage imposed on every business and municpality that I have a problem with.
Greedy exhibitionist! Do your business for free! Help everyone!
I doubt it. He cut his 1 million dollar salary to give about 30 employees a 30K increase in salary. Basically it is a zero sum after all said and done. The only way he could do this is if his already has a couple million stashed away already. He is young so he will be fine by retirement. I think it is rather a great idea. Why not? It is capitalism at its finest. A company doing what it wants without government involvement. I wonder if other companies will follow. I wonder if some CEOs really need 45 million a year to live on. That is there right to make that money but how much does one need to survive extremely well for life?
Salaries are like yachts and a certain part of the male body. These studs are always wanting to look like they have the biggest one.
Bankrupt in a few years. When the company starts struggling will he ask for the money back to keep it going? lol
If he kept him salary at a million and still increased everyones pay to 70 grand, I would agree but the company is saving 930K a year just on his salary. They have 70 employees and half were under 70 grand. So 30 workers got a raise of between 30 and 40 grand a year. I can’t see where you think that will cause bankruptcy.
Ben and Jerry’s did try that but couldn’t support it for long. It seems a real CEO is needed and the only way to get one is with a competitive offer.
I don’t get why he needs reserve. You must not have read the story.
Currently he makes a million a year.
He is going down to 70K a year
30 workers make between 48-69K who will not get a raise to 70K
How on Earth will that make the company go under.
Let’s use numbers.
Let’s say we go with the lowest paid today makes 48,000 and let’s just make all 30 get the lowest paid 48,000.
70K-48K equals 22K
22KX30K equals 660K
His salary minus new salary equals 930K
Total left every year will be at least 270K in reserves year after year.
Bankruptcy? How???????????
Cutting his own salary is a good business decision. Less net consumption by business owners allows more savings and reinvestment back into the company, which helps it grow. Raising employees’ salaries above market is not a good decision unless he has trouble retaining good employees. It raises costs which lowers profits which makes it harder to stay in business.
Notice all the praise comes before he actually does anything. When half are fired and it goes bankrupt, it was his intentions that mattered
Let’s see what his company looks like in a year.
We call them 'Golden Handcuffs.'
Promote a person without marketable skills into a high-paying position, and you end up with a compliant employee who has no choice but to do your bidding. I've seen it first-hand, and it ain't pretty.
you actually used the “p” word
tsk tsk
You’re counting salaries only. There will be overhead, taxes, Obamacare, etc, .... He will also find out he will be missing out on a lot from cutting his own salary as well and most likely regret it. I think its a nice gesture so I’m not slamming him as I thinknhe’s being genuine about it. I think there will be some unforeseen problems thats all...BTW I have owned and operated several successful companies in the past so I’m speaking from a reference of experience. And no they were not lawncare businesses...lol
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