3 ms·
> How do you think they do that with something that is nearly impossible to measure? The floor is mostly arbitrary (see the wage collusion scandal between Appl
by chatmasta 3y ago
> How do you think they do that with something that is nearly impossible to measure?
The floor is mostly arbitrary (see the wage collusion scandal between Apple and Google for an example), and then beyond that it's a question of who is the most productive, effective at getting things done, etc.
So while they do have "something to measure," these metrics can be uncorrelated with profitability - or even negatively correlated with it. It's possible for a productive team to spend their time on an unprofitable project, while another team barely works but ships a profitable product.
- ivancho 3y agoProfitability is not the only short-term metric. In poker I know when a bet is worth it, even if it ends up not winning the pot (unprofitable). Is your argument that business people are just randomly guessing and have no idea how much profit they could expect to make by spending specific amount of payroll?
- chatmasta 3y agoYeah pretty much.