What you need in an employee

Reference no: EM132770365

Question

Suppose you start up a business, and you want to pay all your employees in a fair way. How do you determine what is a fair compensation for their work? Explain your answer. The reason this is important is that many people accuse 'liberals' of wanting to "redistribute" income that was fairly distributed in the first place, and that this is unfair to those who earn more money. But how do we know that the people, such as bosses or stockholders, who earn more money are earning it fairly rather than taking advantage of their employees by paying them less than they should? What is a fair way to determine earnings (in a company you fully own and manage)? And since this is your company and we are talking about our current capitalist economic system, not socialism or communism, you can set up the pay anyway you want that is legal, which currently gives you fairly large latitude. So the question is if you want to be fair to everyone who works for you, and you also want to be fair to yourself, what criteria would you set up for everyone's pay, including yourself?, And don't say you will pay the same wages as other companies in the area or the usual wage for the industry, unless you can prove the standard rate in either case is actually fair, since if everyone else is paying unfair wages, copying their pay criteria will not make your pay fair, just comparable.

And don't give the most common standard answer saying you will base your employees' pay on their education and experience because then you would have paid Bill Gates, Steve Jobs, Steven Spielberg, and Vivien Thomas next to nothing. Thomas in particular since he only had a high school diploma and no college, but he invented open heart surgery and became an instructor of cardiac surgery at Johns Hopkins University where he taught some of the most renowned future cardiac surgeons. Schooling and experience don't particularly equate to what you need in an employee, and many a person who claims 20 years of experience really only has one year of experience twenty times.

Reference no: EM132770365

Questions Cloud

What is option and real option : What are the differences between these two options? Give a vivid description of uses of these options from investment perspective.

Create a complete depreciation schedule for the truck : Create a complete depreciation schedule for the truck using the double declining balance method for depreciation switching to straight line

Capital budgeting-cost of capital : Capital Budgeting, Cost of Capital, and Capital Structure are related to each other. Being a CFO in a company why would you be interested to keep track on these

How much is the total amount due to e as of the date : Ersonal receivable of Z and deposited the same for the account of the partnership. How much is the total amount due to E as of the date of retirement?

What you need in an employee : Schooling and experience don't particularly equate to what you need in an employee, and many a person who claims 20 years of experience really only has one year

What is the value of mazushita common stock : The required rate for Mezushita common stook is 15 %. What is the value of Mazushita common stock?

Discuss the social and organizational issues : This week we focus on the social and organizational issues that exist with better understanding why changes occurs. This week discuss the phases of change.

Performance pay plan to achieve business results : Explain which of the 3 levels of performance make most sense for the compensation plans to focus on in the next upcoming cycle.

Instruments corporations issue to raise money : 1. What are the two primary instruments corporations issue to raise money? Explain the primary characteristics of each.

User Account

All Pages