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By (user no longer on site)
over a year ago
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"Can people see any disadvantages to what he has done..? "
Yes.
High Wages have absolutely jack shit correlation to staff who actually give a fuck about growth.
Think about that for a second.... |
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By *gNe OP Man
over a year ago
Harrogate |
"Can people see any disadvantages to what he has done..?
Yes.
High Wages have absolutely jack shit correlation to staff who actually give a fuck about growth.
Think about that for a second...."
How is that a disadvantage though..? At best it's negates a positive. |
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By (user no longer on site)
over a year ago
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"Can people see any disadvantages to what he has done..?
Yes.
High Wages have absolutely jack shit correlation to staff who actually give a fuck about growth.
Think about that for a second....
How is that a disadvantage though..? At best it's negates a positive. "
Well...
What happens when a company pays ALL his employee's a base rate Minimum wage of $70K per year and there is no growth?..
That's the problem.
Paying inflated wages doesn't solve that problem. |
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By (user no longer on site)
over a year ago
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"Can people see any disadvantages to what he has done..?
Yes.
High Wages have absolutely jack shit correlation to staff who actually give a fuck about growth.
Think about that for a second....
How is that a disadvantage though..? At best it's negates a positive.
Well...
What happens when a company pays ALL his employee's a base rate Minimum wage of $70K per year and there is no growth?..
That's the problem.
Paying inflated wages doesn't solve that problem."
They work harder...or some get laid off..with a better compensation package than otherwise...
Time will tell... |
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"Are people formiliar with the Dan Price story in Seattle, US? Can people see any disadvantages to what he has done..? "
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!) |
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By (user no longer on site)
over a year ago
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"
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!) "
 |
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By *gNe OP Man
over a year ago
Harrogate |
"Can people see any disadvantages to what he has done..?
Yes.
High Wages have absolutely jack shit correlation to staff who actually give a fuck about growth.
Think about that for a second....
How is that a disadvantage though..? At best it's negates a positive.
Well...
What happens when a company pays ALL his employee's a base rate Minimum wage of $70K per year and there is no growth?..
That's the problem.
Paying inflated wages doesn't solve that problem."
Maybe the priorities change, sustainability. |
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By (user no longer on site)
over a year ago
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"Are people formiliar with the Dan Price story in Seattle, US? Can people see any disadvantages to what he has done..?
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!) "
You'd think he was paying out what was manageable though... by the sounds of the story the extra money comes from his own wages ....so that's money that would always leave the business anyway? |
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By *gNe OP Man
over a year ago
Harrogate |
"Are people formiliar with the Dan Price story in Seattle, US? Can people see any disadvantages to what he has done..?
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!) "
Who's to say they can't sustain it? |
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"Are people formiliar with the Dan Price story in Seattle, US? Can people see any disadvantages to what he has done..?
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!)
You'd think he was paying out what was manageable though... by the sounds of the story the extra money comes from his own wages ....so that's money that would always leave the business anyway?"
You'd hope so! He'd be better going forward to issue all workers with shares so the conpNies success will be linked to their dividends (assuming he can avoid short term risky decisions from his staff that may boost profits) |
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By *heOwlMan
over a year ago
Altrincham |
"Are people formiliar with the Dan Price story in Seattle, US? Can people see any disadvantages to what he has done..?
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!) "
Theres a bit of a scale issue with this ... His company has a relatively small number of staff compaired to Tesco - somehow I don't think Tesco have enough well paid bosses to give all their staff that kind of wage. Of course that is assuming that Tesco actually give a monkey about thier staff, but then again that is the point - the value / appreciation / respect the staff feel their boss has for them should keep them happy and well motivated.
(Oh and the company is in a pretty high profit business as opposed to Tesco which is low profit but high volume.) |
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"Are people formiliar with the Dan Price story in Seattle, US? Can people see any disadvantages to what he has done..?
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!)
Theres a bit of a scale issue with this ... His company has a relatively small number of staff compaired to Tesco - somehow I don't think Tesco have enough well paid bosses to give all their staff that kind of wage. Of course that is assuming that Tesco actually give a monkey about thier staff, but then again that is the point - the value / appreciation / respect the staff feel their boss has for them should keep them happy and well motivated.
(Oh and the company is in a pretty high profit business as opposed to Tesco which is low profit but high volume.)"
Can't argue with your point but I felt the OP was wondering if this strategy could be applied by more companies without drawbacks...just pointed out one massive albeit Tesco is an extreme example. |
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By (user no longer on site)
over a year ago
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"by the sounds of the story the extra money comes from his own wages ....
what happens when he runs out?..."
Same thing that would happen in any other business that's not making as much money as it has forecasted.
If he's paying from his own cut, it seems as sustainable as any other type of pay structure.
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By *gNe OP Man
over a year ago
Harrogate |
I thinks it's a great idea, and so long as once re-distributed the wages do not exceed the original total, I cannot see a downside. Wages for everyone could then rise and fall in line with the success of the business. |
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By (user no longer on site)
over a year ago
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"
If he's paying from his own cut, it seems as sustainable as any other type of pay structure.
"
No.
Wages are paid out of Gross Profit(s).
Not personal wages. (or at least that's how it should be) |
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By (user no longer on site)
over a year ago
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A cousin of mine owns numerous small businesses - takeaways et al. He sold a small share of the business to each employee and they get decent wages relative to the market. It's been about 3 years and everyone seems pretty satisfied...in fact the business is growing.
I hope it works for mr price and his company. |
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By (user no longer on site)
over a year ago
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"
If he's paying from his own cut, it seems as sustainable as any other type of pay structure.
No.
Wages are paid out of Gross Profit(s).
Not personal wages. (or at least that's how it should be)"
Whatever the model used... The share/percentage of gross profit that made up dan's own wages are what he seems to be sharing with his employees. |
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By (user no longer on site)
over a year ago
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"
Whatever the model used... The share/percentage of gross profit that made up dan's own wages are what he seems to be sharing with his employees."
I hope he's successful with it.
But imo he's pissing against the wind a bit.
But then I'm not really qualified to say that.
I'm just working on the principle that the successful business models I've seen aren't structured in the same way he has. |
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By (user no longer on site)
over a year ago
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"
Whatever the model used... The share/percentage of gross profit that made up dan's own wages are what he seems to be sharing with his employees.
I hope he's successful with it.
But imo he's pissing against the wind a bit.
But then I'm not really qualified to say that.
I'm just working on the principle that the successful business models I've seen aren't structured in the same way he has. "
I agree... It seems quite novel. He seems to be influenced by Steve Pinker..
http://youtu.be/u6XAPnuFjJc
I'm not sure it'll revolutionise the way business operates though. Nonetheless, it's an interested addition to the market place of ideas. |
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By *heOwlMan
over a year ago
Altrincham |
"Are people formiliar with the Dan Price story in Seattle, US? Can people see any disadvantages to what he has done..?
Sustainability...easiest answer ever.
If your still in doubt- imagine tesco doing it...be out of business by Monday unless you fancy paying £100 for a pint of milk (of which the farmer is has not received a penny more!)
Theres a bit of a scale issue with this ... His company has a relatively small number of staff compaired to Tesco - somehow I don't think Tesco have enough well paid bosses to give all their staff that kind of wage. Of course that is assuming that Tesco actually give a monkey about thier staff, but then again that is the point - the value / appreciation / respect the staff feel their boss has for them should keep them happy and well motivated.
(Oh and the company is in a pretty high profit business as opposed to Tesco which is low profit but high volume.)
Can't argue with your point but I felt the OP was wondering if this strategy could be applied by more companies without drawbacks...just pointed out one massive albeit Tesco is an extreme example."
As I understand it, there is no reason why this business model cannot be applied to anyother company. Afterall He is not subsidising the wage bill, nore is he causing the company costs to increase, but mearly distributing the wages in a less conventional manor.
However I doubt that this idea would scale up that well, at least not with that kind of pay rise  |
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By (user no longer on site)
over a year ago
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"
I'm not sure it'll revolutionise the way business operates though. Nonetheless, it's an interested addition to the market place of ideas."
The biggest fucking problem this guy will have is he **thinks** that by paying his employees $70K a year that's the motivation side of it sorted.
Yes..but also kind of no.
Take a look at footballers.
A premier league player at a top club is on at least $70K PER week. (dollars don't forget that's about £120K our money)
But what happens when that player starts stamping his feet and wanting MORE money?..he's gone to another club.
The more you earn, the more your living expenses INCREASE.
You get greedy.
You want more.
You're not satisfied anymore.
And when that happens you're not motivated to do the job anymore.
This is the problem this guy is going to have, and that's assuming he doesn't go bust before that.
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By (user no longer on site)
over a year ago
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I don't know about that...that's purely speculative at the moment.
There does some to be a thought that money stops being a motivator once people get paid a certain amount...whatever that may be.... It sounds counter intuitive but there is a body of evidence to support the idea.
There are always exceptions, I agree....but in many studies, productivity drops with introduction of PRP. This includes studies that have involved children too...
We'll know soon enough, I'm sure.
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By (user no longer on site)
over a year ago
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"
The biggest fucking problem this guy will have is he **thinks** that by paying his employees $70K a year that's the motivation side of it sorted.
"
That's not exactly true. The idea Steven Pinker puts forward is that money isn't the only motivator... Amongst other things, giving employees some self direction can heavily impact how hard people work...which in turn impacts productivity.
He may be the exception. He has the opportunity to have more...satisfy his greed..yet, for the moment at least, he has chosen to ignore this urge.
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By *gNe OP Man
over a year ago
Harrogate |
"
I'm not sure it'll revolutionise the way business operates though. Nonetheless, it's an interested addition to the market place of ideas.
The biggest fucking problem this guy will have is he **thinks** that by paying his employees $70K a year that's the motivation side of it sorted.
Yes..but also kind of no.
Take a look at footballers.
A premier league player at a top club is on at least $70K PER week. (dollars don't forget that's about £120K our money)
But what happens when that player starts stamping his feet and wanting MORE money?..he's gone to another club.
The more you earn, the more your living expenses INCREASE.
You get greedy.
You want more.
You're not satisfied anymore.
And when that happens you're not motivated to do the job anymore.
This is the problem this guy is going to have, and that's assuming he doesn't go bust before that.
"
You're making a lot of presumptions about human nature. Greed may well be learned behaviour, rather than inherent. |
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By *gNe OP Man
over a year ago
Harrogate |
"I think I saw a suggestion not long back that the Senior Executive of a company should only be paid up to 10 times as much as the guy who is on the lowest wage."
That was essentially the case pre Reagan/Thatcher. Since the free market revolution we can now all appreciate CEO's taking well over 150 times the average wage. Yay for us!! |
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By (user no longer on site)
over a year ago
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"Call me cynical but he's got himself an awful lot of positive press and glowing advertising for his company by doing this.
So..."
So that only works as a business model for the first people to do it. |
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"I think I saw a suggestion not long back that the Senior Executive of a company should only be paid up to 10 times as much as the guy who is on the lowest wage."
Pre Thatcher it was about 6 times the average wage and an average new build 3 bed semi cost about 2 1/2 to 3 times the average wage with a 2 up 2 down in need of modernization costing around 6 mths ave wages...
How times have changed, and Call me Dave wants to give us more of Thatchers medicine so more of us can all be in it together! |
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"The biggest fucking problem this guy will have is he **thinks** that by paying his employees $70K a year that's the motivation side of it sorted.
Yes..but also kind of no.
Take a look at footballers.
A premier league player at a top club is on at least $70K PER week. (dollars don't forget that's about £120K our money)
But what happens when that player starts stamping his feet and wanting MORE money?..he's gone to another club.
The more you earn, the more your living expenses INCREASE.
You get greedy.
You want more.
You're not satisfied anymore.
And when that happens you're not motivated to do the job anymore.
This is the problem this guy is going to have, and that's assuming he doesn't go bust before that.
"
Whenever the subject of pay comes up someone always bleats on about footballers being paid too much!
The fact is premier (or any other) league football team is made up of a squad of maybe 20 first team players. They are the business! They are the income stream, be it gate receipts or merchandising and if the team owner refuses to pay them a substantial slice of the business turnover then they will leave and the business will fail. That is what happens to any business that fails to protect its assets and is stripped of them as a result.
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