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From a hotel accounting standpoint I honestly wonder which is more profitable for what I'd assume can be classified as a low-skill job: 1. Hire more employees
by shostack 9y ago
From a hotel accounting standpoint I honestly wonder which is more profitable for what I'd assume can be classified as a low-skill job:
1. Hire more employees and/or pay higher wages or other benefits to retain experienced (and thus presumably more efficient and effective staff)
2. Churn and burn with abandon because there will always be people desperate enough for any job to keep themselves off the street, even if it's just until they can find something marginally better
I'm not making any judgements on the morality of this...just raising the question since I have a guess that #2 is more profitable.
- SomeStupidPoint 9y agoI suspect that number 2 is less profitable: the quality of work drops, your reputation drops, and the effective market rate you can charge drops. But I think you can get trapped in a number 2 situation regardless -- eg, there's an economic downturn, so people spend less, the business "cost optimizes", which causes people to spend less, etc. I think the second case is a sort of "survival" mode witnessed in fundamentally unhealthy economies where businesses are being squeezed because people in general are being squeezed.