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by barrkel
2856 days ago
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The organization that pays the market wage will usually out-compete the organization which pays based on hours and seniority. Seniority is a poor proxy for productivity (theer's definitely a correlation, but it's not strong and it ignores individual variation, which is large), while paying based on hours is rewarding poor productivity. |
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That's conjecture though isn't it? Because the organization that doesn't promote its star employees out of their range of competence will perform better and have less turnover because people won't be leaving for better opportunities elsewhere.
> Seniority is a poor proxy for productivity (theer's definitely a correlation, but it's not strong and it ignores individual variation, which is large),
Sure, obviously productivity is a consideration in whether to keep an employee, and possibly a consideration for raises. You don't want to keep any kind of non-productive employee. But while they're not productive in their current role, they might be productive in another role.
> while paying based on hours is rewarding poor productivity.
You're assuming a lot about what I meant by hours.