2 ms·

The question is why doesn't the market remove this inefficiency.

ziddoap 7y ago
Because people want jobs, companies want to say they employ X amount of people, and governments like to say "we have low unemployment".
- RivieraKid 7y ago
  I don't see how any of the above should have a significant impact. Even if just one CEO decided to prefer profitability and market share over... bragging about employee count (seriously?), they would steal market share from their competitors over time.
  - ziddoap 7y ago
    I'm no expert but if it was as easy as you are making it out to be, this inefficiency already wouldn't exist. Many CEO's already prefer profitability and market share already, I think. Perhaps rather than give some off-the-cuff (and admittedly fairly weak) examples, I should have said that I don't think these companies view these roles strictly as inefficiencies - but that they offer some secondary or tertiary value to the company such as boosting various job metrics. (Think not just employment #'s, but things such as diversity metrics, wage metrics, etc.) This also assumes that the company even recognizes that the job is not really required. I would hazard a guess that, especially in large corporations, many of these jobs fly under the radar. Perhaps something that was essential 20 years ago is now mostly or completely automated, but Mr. Smith has been with the company for 15 years, and isn't going to tell the boss that his position should be eliminated.
whynotnot 7y ago
you seem to believe that markets are efficient. breaking news: they arent. Between companies - there is some sort of efficiency. Inside companies all such efficiency bets are off. If i walked upto your board and asked for half your CEO's comp to ensure that the same milestones are hit the next quarter, guess what they would say. Similarly at a ballpark estimate, im twice as efficient as some of my colleagues, i doubt im getting paid twice as much. Go figure...
- RivieraKid 7y ago
  Nope, I'm asking why such inefficiency exists and isn't exploited by competitors. I'm not suggesting it doesn't exist.

Because people want jobs, companies want to say they employ X amount of people, and governments like to say "we have low unemployment".

RivieraKid 7y ago
I don't see how any of the above should have a significant impact. Even if just one CEO decided to prefer profitability and market share over... bragging about employee count (seriously?), they would steal market share from their competitors over time.
- ziddoap 7y ago
  I'm no expert but if it was as easy as you are making it out to be, this inefficiency already wouldn't exist. Many CEO's already prefer profitability and market share already, I think. Perhaps rather than give some off-the-cuff (and admittedly fairly weak) examples, I should have said that I don't think these companies view these roles strictly as inefficiencies - but that they offer some secondary or tertiary value to the company such as boosting various job metrics. (Think not just employment #'s, but things such as diversity metrics, wage metrics, etc.) This also assumes that the company even recognizes that the job is not really required. I would hazard a guess that, especially in large corporations, many of these jobs fly under the radar. Perhaps something that was essential 20 years ago is now mostly or completely automated, but Mr. Smith has been with the company for 15 years, and isn't going to tell the boss that his position should be eliminated.

whynotnot 7y ago

you seem to believe that markets are efficient. breaking news: they arent. Between companies - there is some sort of efficiency. Inside companies all such efficiency bets are off. If i walked upto your board and asked for half your CEO's comp to ensure that the same milestones are hit the next quarter, guess what they would say. Similarly at a ballpark estimate, im twice as efficient as some of my colleagues, i doubt im getting paid twice as much. Go figure...

RivieraKid 7y ago
Nope, I'm asking why such inefficiency exists and isn't exploited by competitors. I'm not suggesting it doesn't exist.