It is the way to go if one were to build software that can last ... 3 to 4x pay to get 10-100x output and quality ...
CEO behind Japan’s best-performing stock says his secret is raising salaries
21–30 of 266 posts
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#22Sounds good but does this scale in the long term? Looks like a resource placing firm.
Not sure about japan, but in India it is expected that on average as an employee you get a 10 to 15% hike year on year primarily due to inflation pressures.
How would this company be able to afford this if they are both reducing prices for customers while simultaneously increasing base salaries. Wouldn't the employees leave after 2 or 3 years as the hikes would not be possible after sometime?
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#23What is turnover like in Japan? Do people turnover? It seems like a place where people stay at one company for a career.
Historically that was extremely true. A salaryman would not be hired by a company that would let him retain his social status if he were fired or left. Poaching was uncommon practice. It's becoming much less true today, but it's not over yet.
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#24But will it scale? Sounds great as an employee. What explanation exists to convince an employer?
"Will it scale" is an odd question to ask about a $2.3 billion company.
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#25Surely the raging bull market of the past decade played no part in these gains.
There was no bull market in Japan.
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#26I'd like to question the premise. How confidently can you associate cause and effect here?
Based on what can he guarantee that raises in salary caused the company to grow?
If the formula is so simple couldn't other companies copy that and grow 5500%?
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#27I'd like to question the premise. How confidently can you associate cause and effect here? Based on what can he guarantee that raises in salary caused the company to grow? If the formula is so simple couldn't other companies copy that and grow 5500%?
I guess it would depend on how underpaid the groups where profits are created are. Absent any other catalyst a random event of paying people more followed by a marked increase in productivity would be enough correlation to say "hey, I think this is probably the cause"
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#28I'd like to question the premise. How confidently can you associate cause and effect here? Based on what can he guarantee that raises in salary caused the company to grow? If the formula is so simple couldn't other companies copy that and grow 5500%?
He didn’t just raise salaries... he cut out management too. It makes sense to me the bottom feeder testing companies might not be running very profitably and this strategy could work... pay better people marginally more and have fewer managers.
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#29I'd like to question the premise. How confidently can you associate cause and effect here? Based on what can he guarantee that raises in salary caused the company to grow? If the formula is so simple couldn't other companies copy that and grow 5500%?
>How confidently can you associate cause and effect here?
You cannot. It depends if you’re buying commodified labor and selling commodity products. Walmart and McDonalds franchisees are not going to see much difference other than higher labor expenses and reduced sales due to higher prices at competitors.
Re: CEO behind Japan’s best-performing stock says his secret is raising salaries
#30Sounds good but does this scale in the long term? Looks like a resource placing firm. Not sure about japan, but in India it is expected that on average as an employee you get a 10 to 15% hike year on year primarily due to inflation pressures. How would this company be able to afford this if they are both reducing prices for customers while simultaneously increasing base salaries. Wouldn't the employees leave after 2…
Leave and go where else in software testing in Japan? Based on the article they are paying a lot more than other software testing companies. Also, if they are paying people well and treating them well, a sizable chunk would like to continue even if the salary increases dwindle as long as they are not underpaid compared to the market. I also think that Japanese culture would inspire more loyalty to well paying, well treating companies compared to SV.