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Salary comes from the proceeds created by the employees' work. If the employees don't feel they're receiving enough of the proceeds, they can search for other e
by nknight 15y ago
Salary comes from the proceeds created by the employees' work. If the employees don't feel they're receiving enough of the proceeds, they can search for other employment. It's not like the high-value employees at 37signals would have much trouble getting hired elsewhere.
- fleitz 15y agoIn software circles much of the salary comes from profits from the capital assets the employees create. This is why more mature software companies are able to pay much more than new software companies. If you compare to an industry like fast food where the goods created by labour are not capital in nature you'll see mature operations and new operations paying roughly the same. It doesn't matter whether you work at Bob's Burgers or Mc Donald's you're making min wage.
- tptacek 15y agoFirst: what "capital assets" are you referring to? Second: never mind, what's your point? If most of the value in the company comes from employees and not the execution of the owners, the company pays more salary. If they don't, the employees leave. So, in what way is this responsive?