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Most businesses look for ways to increase their margins over time, which will balance out increases in costs. If that fails, then they will increase their pric
by pyoung 12y ago
Most businesses look for ways to increase their margins over time, which will balance out increases in costs. If that fails, then they will increase their prices. Attrition should result in relatively flat total salary expenses (adjusted for inflation). As people leave, you promote (and give raises) from within the company, and hire new, lower paid staff.
- icebraining 12y agoMost businesses look for ways to increase their margins over time You mean, grow?
- EliRivers 12y agoNo. For example, if one could reduce the cost of making widgets, and sell them at the same price, margins are increased without growth. This is a very common way that companies increase profitability.
- icebraining 12y agoFair enough.