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> If other fast food establishments have been reluctant to raise wages, Jayaraman added, it’s because pressure from investors has elevated quarterly gains above

by xbeta 9y ago

> If other fast food establishments have been reluctant to raise wages, Jayaraman added, it’s because pressure from investors has elevated quarterly gains above the potential long-term benefits of happy workers. In-N-Out has no public shareholders. Well, that's a reason why I think lots of startups these days opt for a much later public offering. Public investors are just very short-sighted on making a smart financial investment decision. Can't blame them, we are all been told using number (or some measurable metrics) to evaluate any businesses without even understanding what does the business do.

chii 9y ago
> using number (or some measurable metrics) to evaluate any businesses without even understanding what does the business do. if those metrics are any good, why won't those metrics be higher for those companies that put long term gains (e.g., happy workforce) a priority? Those metrics that show good numbers for short term gains are bad metrics, and the shareholders who like them are likely to want to cash out before the 'long term' hits, and therefore, use those metrics to justify their decisions.
- xbeta 9y ago
  Unless there's an agreed methodology on how to measure that "happiness" in the workforce with good science backing it, then sure. But for so many years, I think human never reach that consensus.
  - chii 9y ago
    i would've thought the most obvious, and most agree-able method is to simply ask the yes/no question- 'are you happy at this job?'.
    - xbeta 9y ago
      Sure, but I don't think human is very good at judging his/her own emotion on a simple yes/no question on happiness. :-)
hueving 9y ago
Doesn't seem to add up. Google, Amazon, and Facebook are just 3 examples of companies that give no shits about what public investors think and will spend money on the business.
- xbeta 9y ago
  Are you talking about how much employees made on GAF (Google, Amazon, Facebook) or how happy are their employees? I think Amazon is bit special as Jeff Bezos was one-of-a-kind that can continue letting Amazon losing money until recently and public investors were OK to keep putting money on them. As for Google, Facebook, I don't think they are relevant because they were already dominating the market. Most businesses out there aren't in that position, and certainly not In-N-Out.

by xbeta 9y ago

chii 9y ago

> using number (or some measurable metrics) to evaluate any businesses without even understanding what does the business do. if those metrics are any good, why won't those metrics be higher for those companies that put long term gains (e.g., happy workforce) a priority? Those metrics that show good numbers for short term gains are bad metrics, and the shareholders who like them are likely to want to cash out before the 'long term' hits, and therefore, use those metrics to justify their decisions.

xbeta 9y ago
Unless there's an agreed methodology on how to measure that "happiness" in the workforce with good science backing it, then sure. But for so many years, I think human never reach that consensus.
- chii 9y ago
  i would've thought the most obvious, and most agree-able method is to simply ask the yes/no question- 'are you happy at this job?'.
  - xbeta 9y ago
    Sure, but I don't think human is very good at judging his/her own emotion on a simple yes/no question on happiness. :-)

hueving 9y ago

Doesn't seem to add up. Google, Amazon, and Facebook are just 3 examples of companies that give no shits about what public investors think and will spend money on the business.

xbeta 9y ago
Are you talking about how much employees made on GAF (Google, Amazon, Facebook) or how happy are their employees? I think Amazon is bit special as Jeff Bezos was one-of-a-kind that can continue letting Amazon losing money until recently and public investors were OK to keep putting money on them. As for Google, Facebook, I don't think they are relevant because they were already dominating the market. Most businesses out there aren't in that position, and certainly not In-N-Out.