Difficulty with Labor Supply
I overheard a co-worker talking about a prior work experience. There's a natural tendency to feel that an employer, through mismanagement, will burn through brain power and good employees.
One of the good things about doing the podcast with Brett, while I had time to do it, was that it helped us constantly address what could be an emotional response.
So, when I hear the words of, "If they're not careful, they're going to lose some good people," I wrestle between the want of a company owner coming to terms with their poor leadership and decision making, versus the unfortunate reality that even if your position is revenue based, there is a replacement always ready to take your place.
Even though your employer will make derisive criticisms aimed at fast food workers who want to make $15 an hour; it won't stop your employer from hiring those same people to replace you.
Market equilibrium means, essentially:
1) I'm making enough money
2) I don't feel like paying more money
And that leaves a very real fact that many companies will never pay for the right fit, even though that person may be out there. And, many people can't move. And it's that last part that frightens me the most because if I'm right that labor supply is inelastic, yet wages are stagnant in the long run - companies are filling that inelasticity with overstretched, or unskilled labor.
Now, if you'll excuse me, I'm going to check the framing trusses in my home.
One of the good things about doing the podcast with Brett, while I had time to do it, was that it helped us constantly address what could be an emotional response.
So, when I hear the words of, "If they're not careful, they're going to lose some good people," I wrestle between the want of a company owner coming to terms with their poor leadership and decision making, versus the unfortunate reality that even if your position is revenue based, there is a replacement always ready to take your place.
Even though your employer will make derisive criticisms aimed at fast food workers who want to make $15 an hour; it won't stop your employer from hiring those same people to replace you.
Market equilibrium means, essentially:
1) I'm making enough money
2) I don't feel like paying more money
And that leaves a very real fact that many companies will never pay for the right fit, even though that person may be out there. And, many people can't move. And it's that last part that frightens me the most because if I'm right that labor supply is inelastic, yet wages are stagnant in the long run - companies are filling that inelasticity with overstretched, or unskilled labor.
Now, if you'll excuse me, I'm going to check the framing trusses in my home.
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