Darkwind
Diamond Member
- Jun 18, 2009
- 34,860
- 19,389
I disagree. Cutting costs has happened, and will continue to happen in a weakened and sluggish economy. However, if ever we get leaders in our country that will get out of the way of business, then business will return to solid management principles.Growing the top line is almost always preferable to growing the bottom line just by cost cutting. Of course for the last 6 years cost cutting has been the only way companies have grown profits. That cycle is about maxed out. There is little top line growth out there.A well run company will have already calculated the value of labor for a specific job prior to opening the job to fulfillment.Do you even know how to read!? I am serious. Of course stocks are up, CEO's get compensated by how much money the stock earns. That gives them only one person to satisfy....and its not a customer.....its the stock holder. How thick are you.
This is a clear example of someone who follows a talking point script rather than do any critical thinking or apply any actual knowledge to a problem.
If you think that the ONLY way a company can increase revenue is through employee cuts in wages, you simply do not understand the modern day business model.
Business are there to maximize profit. Profit is revenue less cost. The idea we can just slash wages and not affect our revenue is ridiculous. My staff are great. They serve my customers. That maximizes profit. Slashing their wages would make them quit or at least unhappy and affect their job performance and reduce my profit, not increase it. Wages should be set to make employees satisfied, but not overpay them. Boilermaker is a Marxist drone, he grasps nothing.
If a company can slash wages and not affect revenue ,they absolutely should do that because they are overpaying
It is far more desirable and effective for the company to invest in product updates, marketing and expansion over wage cuts. Not that wage cuts are ever off the table, but usually, upgrades in production efficiency or automation is more effective than a wage cut over the long term. Then, simple attrition of labor can cover the costs of the upgrade and bring a better bottom line.
Until then, we are stuck with under qualified workers who think that business exists to keep them in comfort.