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These assertions may be true if the business is sole-proprietor owner-operator, but, beyond that, the assymetry grows quite a bit, including what I posit is a h
by mmt 8y ago
These assertions may be true if the business is sole-proprietor owner-operator, but, beyond that, the assymetry grows quite a bit, including what I posit is a huge step function when the executives are no longer majority owners (or even are just not involved in hiring/firing).
In the typical case, the incentives and power to do anything about them are misaligned. For example, a peer's time will be consumed in interviewing a replacement, but that peer never had any power to raise the salary of the incumbent.
- badpun 8y agoIn practice, you can sometimes switch to contracting for the same company (vs being an employee). The limits for contracting rates are usually much higher than limits for salaries, so there's plenty of room for a raise. I don't know if it's legal in the US, but I've seen it happen in Europe (Poland, Sweden).
- mmt 8y agoAFAIK, it's legal in the US, too, but I'm not sure what point you're making in the context of the sub-thread. Typically, the decision to convert to contracting is between the worker and management, excluding the worker's peers and the company's owners (unless manager-owned).