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What comes first, the productivity gains or a raise? If there is never a raise, or wages essentially do not grow, why would productivity rise? However, produc

What comes first, the productivity gains or a raise? If there is never a raise, or wages essentially do not grow, why would productivity rise? However, productivity has gone up and been helped by technology, wages have not followed.

abakker 10y ago
assuming a Technology/Capital/Labor split (simplistic), if productivity has gone up due to technology, and the technology is primarily a function of capital (i.e. technology doesn't make me smarter, it makes my computer faster) then doesn't it follow that my wage doesn't go up, but the money spent on my computer does?
- douche 10y ago
  You know, that would make a lot of sense, but it seems to be awfully hard to get management to sign off on time-saving tools, equipment, and software sometimes. It seems like it's pretty simple math: You're paying me X/day, tool which costs Y would save me Z days of time, over the course of the year. Is Y/Z >= X? Then get out the company Amex already.
  - naveen99 10y ago
    Unless the worker writes their own software with their own computer, in which case they can pocket the productivity gain. This is basically what has allowed programmer salaries to go up. IT frequently gives long estimates and then does the work in a tenth of the time, pocketing the surplus. Happens all the time at multiple levels. Until the end users learn to solve their own problems, they will keep losing to people who learn to automate themselves. So if the simple math checks out, don't ask the company, break out your own Amex, and pocket the difference.
    - hiram112 10y ago
      Where do you work? I've never worked at a company where I pocketed the extra money by coming in under schedule. On the other hand, I often pay out of my own pocket for licenses, books, etc that benefit the company. In return, I get more work and less time to do it.
      - naveen99 10y ago
        i meant pocket the difference in time saved. Nice added benefit is irs doesn't tax time off, energy saved, or happiness. you can use that time and energy to make money elsewhere or invest in learning, networking, understanding your bureucracy. but i am sure there are companies where your bonus depends on your performance vs. your proposed budget. If you are not being rewarded for improved productivity and being treated as a commodity, why should you pass on your internal productivity gains. sometimes you want more work (responsibility). that's how you get experience and a bigger budget. Even if you can only spend the budget for work things, you still gain autonomy and power.

abakker 10y ago

assuming a Technology/Capital/Labor split (simplistic), if productivity has gone up due to technology, and the technology is primarily a function of capital (i.e. technology doesn't make me smarter, it makes my computer faster) then doesn't it follow that my wage doesn't go up, but the money spent on my computer does?

douche 10y ago
You know, that would make a lot of sense, but it seems to be awfully hard to get management to sign off on time-saving tools, equipment, and software sometimes. It seems like it's pretty simple math: You're paying me X/day, tool which costs Y would save me Z days of time, over the course of the year. Is Y/Z >= X? Then get out the company Amex already.
- naveen99 10y ago
  Unless the worker writes their own software with their own computer, in which case they can pocket the productivity gain. This is basically what has allowed programmer salaries to go up. IT frequently gives long estimates and then does the work in a tenth of the time, pocketing the surplus. Happens all the time at multiple levels. Until the end users learn to solve their own problems, they will keep losing to people who learn to automate themselves. So if the simple math checks out, don't ask the company, break out your own Amex, and pocket the difference.
  - hiram112 10y ago
    Where do you work? I've never worked at a company where I pocketed the extra money by coming in under schedule. On the other hand, I often pay out of my own pocket for licenses, books, etc that benefit the company. In return, I get more work and less time to do it.
    - naveen99 10y ago
      i meant pocket the difference in time saved. Nice added benefit is irs doesn't tax time off, energy saved, or happiness. you can use that time and energy to make money elsewhere or invest in learning, networking, understanding your bureucracy. but i am sure there are companies where your bonus depends on your performance vs. your proposed budget. If you are not being rewarded for improved productivity and being treated as a commodity, why should you pass on your internal productivity gains. sometimes you want more work (responsibility). that's how you get experience and a bigger budget. Even if you can only spend the budget for work things, you still gain autonomy and power.