82,910
edits
Bonus: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary Tags: Mobile edit Mobile web edit Advanced mobile edit |
Amwelladmin (talk | contribs) No edit summary Tags: Mobile edit Mobile web edit Advanced mobile edit |
||
| Line 18: | Line 18: | ||
The cost of capital being what it is, the lower one can make that commitment cost base, the better. | The cost of capital being what it is, the lower one can make that commitment cost base, the better. | ||
All of these desired outcomes arrive at the same conclusion: keep basic pay as low as possible, and reward people with a big fat annual bonus. Financial services bonuses can be three, four, five, or ten times the size of the basic pay. | |||
This is excellent news for Randian raw-meat eating cannibal types, but has its downsides too. | |||
You can always offer staff the carrot of annual pay rises, but this has a ratchet effect: a servant whose work quality declines over time cannot really have her pay reduced — employment regulation makes this procedurally difficult. So payrises tend to be anaemic, hedged about by concern for the firm’s cost base should the business environment deteriorate. | You can always offer staff the carrot of annual pay rises, but this has a ratchet effect: a servant whose work quality declines over time cannot really have her pay reduced — employment regulation makes this procedurally difficult. So payrises tend to be anaemic, hedged about by concern for the firm’s cost base should the business environment deteriorate. | ||