5 ms·
No not necessarily. Let me go over some scenarios: Bob contributes 1. I contribute 1.25. Units don't matter, I contribute 25% more. It used to be maybe the sa
by collegeburner 4y ago
No not necessarily. Let me go over some scenarios:
Bob contributes 1. I contribute 1.25. Units don't matter, I contribute 25% more.
It used to be maybe the salary band is $100k to $130k. Bob gets $100k. I get $125k. My employer gets a total value of 2.25 for $225k.
Now my employer has to disclose salaries and has 2 options:
1) Don't make out salaries the same, Bob quits, now the employer has only 1.25 when they need 2.25 and have to go re-hire ($50k or more in a lot of times).
2) Make our salaries the same, so now Bob also gets $125k and employer pays $250k for 2.25. This is what will happen in the short term and what attracts people, but in the long term what will happen is
3) Make our salaries the same but slow raises so gradually they go to the inflation indexed amount of about the average, so $112.5k more or less. Now employer still pays $225k for 2.25. But now I am subsidizing Bob the less productive worker for $12.5k every year.
A lot like unions, making things more uniform often comes at some expense to the top performers. I always sit near that top so I say no this is stupid and I hate it. I don't give a shit what Bob is paid and I give even less if it costs me money for him to get more.
- rootusrootus 4y agoOn HN a lot more than half the commenters believe themselves to be one of the top performers.
- collegeburner 4y agoI can believe that people who spend extra time like that skew to above average. Hn is not a random sample, it is very self selective.
- tbrownaw 4y ago1b) Bob actually has a bit of self-awareness, nothing happens. 1c) Bob gets annoyed and tries to leave, but all the offers aren't really better.
- Epa095 4y ago[citation needed]. Is there no market here? No other companies which sees the opportunity to grab you?