Hacker News new | ask | show | jobs
by adamsiem 1883 days ago
That’s not a market rate. How would you handle the remaining team’s wages? What do you do with that elevated rate if/when the job market returns?
8 comments

> That’s not a market rate.

What do you think 'market rate' means? If you aren't able to hire for $14 but someone else is for $18... then $14 is clearly not the market rate and $18 is. That's what a market rate is - the rate things are selling for in the market.

> I assume they are increasing their hourly rate due to

Doesn't that maybe suggest that $18/hr is probably the current market rate then? My understanding of market rate is "amount at which the two parties are willing to negotiate", not "amount that the employer wants to lock in at, all other factors be damned"

If one can't afford to pay competitive wages, that may suggests they're not actually financially healthy enough to stay in business.

If you can't get a worker for the "market rate", perhaps the hard answer is that $14 is no longer the actual market rate, and you need to offer more money to get employees.

I live in a 50k poulation town, and $14 is not a living wage.

What do you mean when you keep saying “market rate?” You describe your competitors poaching your employees by paying them more, and saying it’s not fair because you can’t pay them that. Tough shit buddy! Sounds like you’re paying below market.
Same reason contracts pay more than salary.

If someone can Doordash, etc, and make more( while arguably dealing with less stress) they'll rationally do that.

Or since this is HN, can you automate some of these tasks ?

Increase prices? And if you are having a problem hiring how can you be sure you are offering market rate? The market rate has increased due to PPP1/2.
market rate is whatever people are willing and able to be paid to do the work at.
But what if the supply gets tighter ? The market rate must adapt (since it's a market). You may have to raise everyone or hire no one new, or vote for a communist 5-year plan.

Imagine if instead everyone wanted to work at your restaurant, EVERYONE, you'd fire your 6 guys and pay $2 their replacement, no ?