U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Business
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-09-2019, 08:42 PM
 
356 posts, read 195,478 times
Reputation: 195

Advertisements

Business Owners: Is it true that most business owners like to underpay their employees?

I notice this is the common trend in job ads.

What are your thoughts?
Reply With Quote Quick reply to this message

 
Old 06-09-2019, 09:14 PM
 
Location: Shreveport, LA
1,430 posts, read 1,121,229 times
Reputation: 770
Quote:
Originally Posted by mrxalleycat View Post
Business Owners: Is it true that most business owners like to underpay their employees?

I notice this is the common trend in job ads.

What are your thoughts?
Employees are a business expense—as a person trying to turn a profit, I want my employees paid highly enough to not go elsewhere, but not so high that it takes unnecessarily too much money out of my pocket. So as low as it can be, but as high as it has to be—balance in all things.
Reply With Quote Quick reply to this message
 
Old 06-09-2019, 09:24 PM
 
1,024 posts, read 593,728 times
Reputation: 3223
Yes, most job adds say "Seeking candidate to work for less than minimum wage" in my area too.
Reply With Quote Quick reply to this message
 
Old 06-09-2019, 09:45 PM
 
22,247 posts, read 29,167,869 times
Reputation: 17751
Quote:
Originally Posted by mrxalleycat View Post
Business Owners: Is it true that most business owners like to underpay their employees?

I notice this is the common trend in job ads.

What are your thoughts?
I can't speak for most, but my experience has been that you get what you pay for.

I'd rather pay one good employee well than two or three crappy employees minimum wage.
Reply With Quote Quick reply to this message
 
Old 06-09-2019, 09:59 PM
 
Location: Riverside Ca
20,897 posts, read 23,295,749 times
Reputation: 32201
Quote:
Originally Posted by mrxalleycat View Post
Business Owners: Is it true that most business owners like to underpay their employees?

I notice this is the common trend in job ads.

What are your thoughts?
Not in my case. I wanted good professional people so I paid well. I didn’t go nuts but I paid enough so people stayed. Finding good workers is hard. Trust me I know
Reply With Quote Quick reply to this message
 
Old 06-09-2019, 10:39 PM
 
10,534 posts, read 14,029,374 times
Reputation: 16232
As an employer, I also belive that paying an employee the max I can afford for their skills is worth every penny. No need to low ball when all that does it create moral issues and expensive turnovers. Most employers I know pay in excess of what some employee's true value to the company is really worth just to retain a good employee.

I think this notion of employers underpaying deliberately is based more to way too many workers having some delusional belief in what they think they are worth to the business community.
Reply With Quote Quick reply to this message
 
Old 06-09-2019, 10:57 PM
 
18,857 posts, read 57,374,908 times
Reputation: 33457
Not sure if this is the proper forum for the thread, but the "one size fits all" question that is the original post is uninformed.

Day labor has the reputation of coming "dirt cheap" for a reason. Some of those employees might work, some not, and a cattle call for new ones at the lowest wage gives a chance for employers to observe and cull.

Even semi-skilled jobs have a cost of training. High turnover from low wages means more training costs and lower productivity. Smart employers factor that and pay enough to balance all turnover costs (many of which are hidden to first glance) vs. wages.

Jobs that require skills going in have to pay for employees with those skills.

Each job has an inherent value. Sorting 100 widgets per hour to select 50 salable widgets that sell for $10 per pack of five isn't going pay $100/hr to anyone but the boss's mistress. Gladhanding politicians and customers to land a million dollar contract with no interference is going to pay $$$.

Some companies understand the value of employees and pay commensurately, some don't.

Employee pay is only part of what goes into the success or failure of a business.
Reply With Quote Quick reply to this message
 
Old 06-09-2019, 11:03 PM
 
758 posts, read 395,846 times
Reputation: 2278
Quote:
Originally Posted by Rabrrita View Post
As an employer, I also belive that paying an employee the max I can afford for their skills is worth every penny. No need to low ball when all that does it create moral issues and expensive turnovers. Most employers I know pay in excess of what some employee's true value to the company is really worth just to retain a good employee.

I think this notion of employers underpaying deliberately is based more to way too many workers having some delusional belief in what they think they are worth to the business community.
Perhaps. But there are lots of cultural and structural factors that can lead lots of people to think that, and for lots of employers (but by no means all) to try to underpay workers. Here are some:

WHAT ONE LEARNS FROM GOVERNMENT PROCUREMENT
1)In public bidding for jobs (e.g., construction, services) governments are required to take the lowest bid. Thus:
1a)Most businesses trying to get govt contracts try to underpay workers (if they are on the up and up and not bribing politicians), and
1b)Most people are aware of this rule, and on that basis presume that price drives most decisions. Thus, they presume the vast majority of business is driven by price, not quality, and, therefore, quality workers are not as much in demand as are workers willing to take lower pay.

WHAT ONE LEARNS FROM HIGH PROFILE BUSINESSES DECISION-MAKING
2)Very high profile moves of some very high profile businesses are consistent with trying to underpay workers. Things such as:
2a)Moving production off-shore--usually (not always) very hard to justify on the basis of quality.
2b)Automating that removes jobs.
2c)Opposing minimum wage, overtime, and workers' comp laws when those laws come under discussion.

WHAT ONE LEARNS BY WORKING IN LOW- AND MODERATE-SKILL JOBS
3)Most people do not work in high-skill jobs. Most jobs are low- and medium-skill jobs. Most employers with such jobs to offer--coffeeshops, temp agencies, retail sales, fast-food, van drivers, delivery people, and so on--see an almost unlimited supply of mostly interchangeable workers, and pay accordingly. An employer who paid more would probably still have lots of turnover and, even if not, would probably not reap any compensatory productivity gain. Because most people are in such jobs, most people will experience being paid as little as possible. Consequently, most people will conclude that most employers want to pay their employees as little as possible--and perhaps even underpay them.

I believe a lot of businesses put worker quality ahead of price. But, looking at the landscape, can anyone of integrity maintain that MOST businesses put quality ahead of price? Most people put price ahead of quality. Why should we expect businesses--set up and run by people--to be different?
Reply With Quote Quick reply to this message
 
Old 06-10-2019, 06:46 AM
 
6,895 posts, read 3,111,732 times
Reputation: 20887
Quote:
Originally Posted by mrxalleycat View Post
Business Owners: Is it true that most business owners like to underpay their employees?

I notice this is the common trend in job ads.

What are your thoughts?



That is nowhere close to truth. Businesses have one objective only: Make a profit. Employees are an expense required to achieve that profit, just like rent, lights, equipment, and everything else. They certainly aren't rubbing their hands in glee looking for ways to stick it to their workers. That's just paranoid nonsense.



Smart businesses pay employees well, chiefly because they've learned how to sell a product or service at an adequate price.
Reply With Quote Quick reply to this message
 
Old 06-10-2019, 06:49 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
32,335 posts, read 58,942,406 times
Reputation: 35363
Quote:
Originally Posted by Metlakatla View Post
I can't speak for most, but my experience has been that you get what you pay for.

I'd rather pay one good employee well than two or three crappy employees minimum wage.
Same here. I had a business for 16 years, and my last full-time employee was getting $12/hour, that was in 2004. I paid my very first employee in 1993 $8/hour, which was almost double the $4.25 minimum wage. I never hired people without experience, however, so they were productive from the first day.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top