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Discussion in 'General Business Forum' started by Bronco78th, Sep 13, 2019 at 10:38 PM.
Just wondering what you all thought about this concept?
Came across it with an American firm 30 years ago.
At the interview they asked what salary you wanted and if you were hired that was your starting salary.
Of course if you sold your time too cheap that was your problem. And if you priced yourself too high you were too expensive for your skills so would not get the job.
Pay rises were done as a percentage across the company and increments due to seniority so even low paid staff could increase pay over time.
Or they left for a better job a hundred plus miles away...
The idea of setting own pay is s good one. Better than the common idea of advertising a job with say salary of 19k and everyone getting that plus once a year a one percent or so pay rise until July are on minimum wage. The school leaver, the guy with 30 years experience and the guy who scored top in interviews and assessment, all starting on same pay.... It ignores what can be brought to the job.
It is OK setting your own pay if you back it up by bringing the business profit but I think it is stupid idea .
It's exploitative of employees ...because if you give yourself a raise, they'll pay it for a month or two but reserve the right to terminate your services if they find you're not worth it! So all employees try to underpay themselves to keep their jobs or even undercut their colleagues to win promotions.
Its a sad part of life that in many companies that are doing well, the owner or MD gets massive pay rises every year or two, but ignores the rest of the staff especially the lowest paid people, It takes the whole workforce to earn the profits, but greed at the top is rampant in UK companies and strangely also in town halls and utility companies.
You cannot know someone is going to make the company more profit until after you take them on at even the pay you set for them.
@Chris Ashdown I think that is a little unfair.
When I started my business I was getting more and more in debt. I was gritting my teeth at night because I was so stressed out and my GP thought a blood pressure monitor was broke because my pressure was so high (to put that in to context I was 28, barely drunk, went to the gym and not over weight). I am not saying everyone went through what I did, but we took those risks and the stress that came with it - why should the owner not earn more and get bigger pay rises? They took the risk, now they take the reward.
Dont get me wrong, any staff we have/have had have all been paid more than minimum wage.
Personally I disagree with staff setting their own wage. When I worked for a bank, there were people who did the bare minimum but anything they did do over and above their job, they sung from the rooftops so everyone knew about it. You then had people who worked overtime with no extra pay and just got on with it. You know full well which of those people are going to make a song and dance about how they need a bigger pay rise and in reality they are the least deserving of the 2. I am all up for a discussion/negotiation about it.
Sounds like when wage set by the bank things were badly done, would a change not have benefitted the organisation?
I don't see I am being unfair
Many years ago well before my time, there was a wise large company owner up north who considered that nobody should earn more than 10 times the pay of those at the bottom. whilst it is incredibly hard to put numbers in place, it does seem obscene that chairmen of large companies get paid many millions per year with some earning 8 figure numbers whilst the bottom rung get the minimum wage or maybe 50p above it
Thats not to say owner managers who set up companies with all the risk involved should not be well paid, just they should also consider the workers who helped make the company a success
Perhaps they need to consider the value of the employees.
Does the boss of a major company add any value to the company? Say CEO of Disney - is he worth more to the company than a particular janitor?
Does CEO add more value to the company than that janitor? If so then pay the CEO more.
Lots of people work in support functions - cleaning, HR, driving, security etc where in their job they are not making money for the company however they enable others to make the money. Who individually is worth more to the company?
Ok so where do you draw the line, if at the bottom the cleaners are not helping to make the place work, then presumably the next tier up has to do their work as well as cleaning up and so on, If you take the car industry the person who moves the stock parts to the front line is needed just as much as the department head and the directors
The point is the greed at the top of the pile far exceeds that at the bottom, directors and MD's getting massive percentage rises yet the lower three quarters or maybe 90% get peanut rises
John lewis seems a far more even playing field, but still have room to make changes
When I worked for a cinema I came in at the start of my shift, I did my job and then I went home.
IT issue? Not my problem.
Not hitting target? Not my problem.
Burgled? Not my problem.
Complaint? Not my problem.
Just come in, do my job, take the money and go home, not a care in the world.
I have been a manager.
Come in, do my shift.
Not hitting target, get the third degree - until the next month/quarter/year when it starts again, nobody is bothered about the last period.
IT problem - affects me as it means we are less likely to hit target.
Complaint? If it is not about one of my team, not my problem. If it is, more paperwork.
In general, you stick to your shift, you might get a bit of a telling off and do the odd bit of overtime but nothing major.
I have run my own company.
IT issue - my problem.
Not hitting target - my problem.
Burgled - my problem.
No 9-5 shifts. May as well be 24/7 at times.
If I make a wrong decision we could be closed down.
These are all real jobs I have held. There are times I would quite happily take a minimum wage job with no hassle.
If wages were much more level, what incentive is there to move up the ladder? If I could earn half of what I earn now doing what is classed as a minimum wage job or similar, I would go and do it. I quite liked having no stress.
My Daughter worked on the claims side of NFU, if the company made a profit then the whole staff got normally a substantial bonus most years, unfortunately only a small number of companies do the same