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You might assume the total cost of those 2 options is equal, but when you look at the overhead/additional compensation (insurance, retirement, etc.) for each po
by RougeFemme 14y ago
You might assume the total cost of those 2 options is equal, but when you look at the overhead/additional compensation (insurance, retirement, etc.) for each position, it might actually be cheaper to hire 1 at 100K rather than 2 at 50K.
- w1ntermute 14y ago> it might actually be cheaper to hire 1 at 100K rather than 2 at 50K You're totally missing the point. The GP was just giving an example. Adjust the numbers however you want so that the latter option is cheaper.
- josephhardin 14y agoThere is a bigger issue at work here. You can pay the one professor 100K, and have a slightly more relaxed professor that is likely to be more productive, or hire two at 50K that end up spending a large amount of their time looking for better opportunities, worrying about money, losing self esteem when comparing themselves to other professors that are making that 100K, etc. There is a threshold below which, you are just throwing away money.