Skeptic Bob
DP Veteran
- Joined
- Oct 6, 2014
- Messages
- 16,626
- Reaction score
- 19,489
- Location
- Texas
- Gender
- Male
- Political Leaning
- Libertarian - Left
I disagree. I think a fair employer has the obligation to look at the benefits he offers his employees, and distribute those on the basis of merit. Not who is the most intimidating.
It isn’t about being intimidating. Workers always think they are worth more than employers do. It is a stupid financial decision to pay more than you need to in order to hold on to good people. It isn’t a charity. You are trying to turn a profit.
Let’s say I have 5 employees and I currently pay them each $70,000/yr. A lot of time was put into training them and getting to a productive level. One of them comes to me and says he got an offer from another company for $80,000/year and plans to quit unless I can match that. I decide that training another person up from scratch isn’t worth it so I match the offer. Are you saying that even though my other 4 employees got no such outside offer I should now have to pay all of them $80,000 as well?
Paying more than I need to puts me at a disadvantage with my competition because it gives me less money to bargain with in attracting the best workers and could force me to raise my prices higher than I normally would.