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by chadash 617 days ago
Obviously in practice, this isn't always true, but in general, each employee should output more than their pay, or they wouldn't be there. As an example, Exxon Mobile supposedly has profits of $899,000/employee [1]. Their average pay is probably significantly lower than that, but let's say it's $300k, so a 20% boost in productivity increases profit per employee by $180k. An increase of 50% in salary (and I don't think it takes that much to get people to work in an office) costs them $150k.

[1] https://www.lifehealth.com/top-25-us-companies-ranked-by-pro...