Employers will do almost anything to find workers except pay them more
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Re: Employers will do almost anything to find workers except pay them more
#2Shit-free & GDPR-compliant version: http://archive.is/aT8G1
Re: Employers will do almost anything to find workers except pay them more
#3CapEx vs OpEx shocker.
Re: Employers will do almost anything to find workers except pay them more
#4It’s interesting how much momentum there is in these processes. After several decades of big wage gains, during the 1940s, 1950s, and 1960s, the nominal increases could not be stopped, even as the economy weakened in the 1970s and 1980s. Back then all the wage cuts had to done through inflation. Nowadays there is no inflation, and no momentum to restart wage increases. This part of the article says it right:
“””The underlying cause of the “labor shortage” is hiding in plain sight. It’s the long-term trend of funneling the gains from labor productivity not to the workforce, but to shareholders. As with any addiction, this process produces short-term euphoria, reflected in share prices, but long-term pathology, reflected in income inequality, poverty and social unrest.“””
Re: Employers will do almost anything to find workers except pay them more
#5"That money won’t disappear, of course—it will go into the pockets of workers, and then find its way back into the coffers of corporate America via higher sales."
Do people really go out and spend money immediately if they get raises? Personally, if I get a raise, I may treat myself to something nice, but then I immediately go back to my old spending habits so I have more money to save.
Re: Employers will do almost anything to find workers except pay them more
#6"That money won’t disappear, of course—it will go into the pockets of workers, and then find its way back into the coffers of corporate America via higher sales." Do people really go out and spend money immediately if they get raises? Personally, if I get a raise, I may treat myself to something nice, but then I immediately go back to my old spending habits so I have more money to save.
The average person spends almost exactly as much as they make as income rises. It's a hedonic treadmill https://en.wikipedia.org/wiki/Hedonic_treadmill
Re: Employers will do almost anything to find workers except pay them more
#7When accessing from The UK:
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Re: Employers will do almost anything to find workers except pay them more
#8I wonder to what degree company size and current employee wage plays a role in this (in the U.S. the pressure to not share salary with coworkers tried a wrench in this theory).
Given a shortage, raising starting wages would encourage people to change jobs, however employees (recently hired or existing) before the increase would also want that new increased rate.
Combined with companies hiring thousands (think Walmart) a wage increase becomes multiple millions per year (that's a lot harder to sell to a board)
Re: Employers will do almost anything to find workers except pay them more
#9I’d like to earn more, but I also want the market to keep on going up for my retirement investments. At mid career, my 401k performance over the next 20 years is now market driven, rather than by contributions over the next 20.
So at this point, I’d rather have better investment returns than a higher salary.
Re: Employers will do almost anything to find workers except pay them more
#10"That money won’t disappear, of course—it will go into the pockets of workers, and then find its way back into the coffers of corporate America via higher sales." Do people really go out and spend money immediately if they get raises? Personally, if I get a raise, I may treat myself to something nice, but then I immediately go back to my old spending habits so I have more money to save.
The average person spends almost exactly as much as they make as income rises. It's a hedonic treadmill https://en.wikipedia.org/wiki/Hedonic_treadmill
Thanks HN, I didn't realize this phenomena was named. Learn something new everyday.
I always just said, expenses rises to meet income, + 25%.