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Interesting...I do remember hearing the news story about this a little while back.
Sounds like the guy was well intentioned..but didn't run the numbers.
I feel the same thing is being done nationwide where voters or politicians are voting to raise the min wage...because they are well intentioned...but they don't realize the possible side effects. Layoffs, businesses closing/moving, hours cut, big price increases.
He basically did the same thing with his employees. He only had 200 employees and I believe the lowest paid person got 70 grand. This was way back in 2001. The parking lot was filled with Mercedes... he said he bought one for every employee as a holiday gift one year. He said that was actually the main tenet of his business, hire the best people and pay them so much that they never leave.
He basically did the same thing with his employees. He only had 200 employees and I believe the lowest paid person got 70 grand. This was way back in 2001. The parking lot was filled with Mercedes... he said he bought one for every employee as a holiday gift one year. He said that was actually the main tenet of his business, hire the best people and pay them so much that they never leave.
That's not what happened in this case. In your case he still had a pay-scale to pay high-achievers more; and then gave them a bonus of a car. This guy paid his most skilled, long term people, the same amount as someone he hired off the street. It was an egalitarian gesture that was doomed to failure because human nature asserted itself. People with years of experience & skills were put on the same pay-scale as someone who lacked such.....hence the resentment. A skilled manager, a person who deals in reality, not ideology, understands how to manage people & the human condition as it is; not as they wish it was.
The fact that this simple observation seems to be going over the heads of so many shows the grave condition years of propaganda have unleashed on the body politic.
Last edited by Brave Stranger; 08-04-2015 at 01:43 AM..
What if the CEO had met individually with each employee to give raises, and made it clear to each employee not to discuss their raise or their salary with any other employee? Then the top two employees would not have known or cared or felt sleighted. And this matter wouldn't have exploded in the media. Do you think it could have worked better this way?
Bottom line: in today's climate people cannot live comfortably on less than $70,000/year. This CEO was simply using his clout to ensure none of his employees were suffering anymore. Noted in the article was an employee who was having trouble paying her rent AND her student loan. Her raise would have fixed that. As for the two higher-end employees who resigned because they felt it was unfair for "less skilled" employees to be earning as much as them...they could have asked themselves a simple question: "Do I even NEED a raise? No. I am doing fine."
[quote=Zelpha;40685483]What if the CEO had met individually with each employee to give raises, and made it clear to each employee not to discuss their raise or their salary with any other employee? Then the top two employees would not have known or cared or felt sleighted. And this matter wouldn't have exploded in the media. Do you think it could have worked better this way?
Bottom line: in today's climate people cannot live comfortably on less than $70,000/year. This CEO was simply using his clout to ensure none of his employees were suffering anymore. Noted in the article was an employee who was having trouble paying her rent AND her student loan. Her raise would have fixed that. As for the two higher-end employees who resigned because they felt it was unfair for "less skilled" employees to be earning as much as them...they could have asked themselves a simple question: "Do I even NEED a raise? No. I am doing fine."[/QUOTE
Yes, they can, especially in the South and Midwest. If a single guy/girl can't make it on 70K, then the problem lies elsewhere..
I just love it when the "Invisible Hand of Economics" grips grandstanding idiots by the throat give them a good shake.
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