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I don’t understand your argument. If 8 engineers work for $100 each, work 40 hours per week and output 320 hrs of work a week, or 10 engineers work for $80 each
by lukevp 5y ago
I don’t understand your argument. If 8 engineers work for $100 each, work 40 hours per week and output 320 hrs of work a week, or 10 engineers work for $80 each, 32 hours per week and output 320 hrs of work… there is overhead of managing more people, yes, but the people will likely be more productive per hour than the 40 hr per week people. Why does it matter if the company is making 3x or 30x on the hours per employee when we’re discussing the hours/pay ratio per employee, which would stay the same?
- metacritic12 5y agoThat's a good point. It depends on whether the company's production function really is just 3x the cost of each employee. Clearly, on average, it has to be a high multiple, but on the margin it probably does drop to 1x. I concede that the argument for sublinear would have to be something about overhead or n-choose-2 communication costs.