Pay

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You teach the lower producer how to produce at a higher rate, If he can't do it, fire him and hire someone who can.

You start with a production rate of three things an hour. Pay the worker

five dollars per thing. His burden for the company to pay isn't free.

JT, If you pay him $10 and you keep $10, how is your profit $10?  Have you no overhead?

Jt, if this great employee is working 8 hours a day, and bringing in a whopping $80 bucks a day five days a week for his employer, we won't even go into sick or personal days he might take off where he's not bringing in anything, but you want him paid anyway don't you-and gets half of it, how long do you see the company in business?

It can't any of you do basic math or reading. If you would read the post, 1 per hour was production, one unit equals $20 sale. $10 to labor, $10 to owner. 8 hour day, worker makes $80, owner makes $80. If the worker can figure a way to make 2 per hour, how should the other $20 be allocated? Should the worker not receive any of the $20? He was getting half, should he continue getting half? His production doubled, should his pay reflect that?

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Well, shouldn't the worker kick in half of the production costs and half of the owners FICA taxes as well?

NO.! he shouldn't get more pay if he made more things unless he has a

different pay agreement.

Just get China to make your things; pay them 20 cents each.  Get illegal aliens to distribute your things for 10 dollars a day and retire to Cancun.

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YOUR problem is we can do basic math, and you don't know squat about business or anything else. Why can't you answer the question, how long will the company stay in business giving away half?? First of all, an hour to make something that is only going to earn $20 is ridiculous, second, giving away half of that is lunacy so he shouldn't even get that to start with. Has nothing to do with whether or not a person "knows" basic math. The question is what is stupid.

JT:  It took one hour for one man to make one thing. The thing sells for $20. You pay the man $10 and you keep $10.

So in an 8 hour day, he makes 8 things and is paid $80.  You keep $80.  Same question, do you not have any overhead.

BTW, last year this time, I employed a crew of 10 or so.  You can look it up.  And after my overhead, they made more than I did but sometimes it costs money to make money.

This year, I'm employing a similar sized crew paying them with my net overhead of last year as an investment on next year.

How's you're your business doing?

When you worked for TVA, what did you do to generate a profit for your employer?

haha you have to love, try to keep the question or example simple and someone trys to make it complicated.

we hate the auto industry, however that is what they do. Mechanics get paid for the job, the mechanics that can produce more get paid more. Auto sales people get paid commission, thus the more they sale the more they make.

There's simple and then there's ridiculous. This was flawed and ridiculous and proof he has no idea how business works. The truth would be, if he's only producing $20 worth of goods an hour, he shouldn't be getting anywhere near half of that. Jt won't answer the questions about overhead or how long a business could last giving the money away.

Your Costing Model is too Simplistic to be taken seriously..

  How much training cost did the company have spend to get each persons production rate up to being able to make 1 per hour? Your not taking into account, any Capital Cost to build the physical structure plus equipment and materials, allowing the person, to become successful in fulfilling the 1/hr production rate, plus a whole host of other costs. Without the company going into debt to make your widgets in the first place, the risk of loss lies solely on the company, therefore maximizing profits are in the foremost necessity to meet loan obligations and overhead costs, enabling reinvestment's needed to be able to produce 2 widgets/hour, with the purchases of new equipment or whatever. 

  Without Maximizing Profits for reinvestment in the Future, You would be out of Business and no place to make your 2 widgets/hour...So now you'r heading Back to the Unemployment Office to get that $200 Check...the company contributed to while you worked at your now previous employer.

OK, here goes.

It was a simple question that an elementary school student could grasp. Y'all tried to add anything possible to complicate it. Forget all the training, materials, payrole, etc.  One per hour was acceptable. If the worker could double his production, should his pay reflect that increase in production. I can't believe none of you could grasp that question enough to answer, so I assume you refused to answer and all you could do was to muddy the water.

Best, you kept making references about me not understanding business. You gave no answers.

Stanky, see the comment to Best.

Dire, Jack and Uandurine,  From your answers, if you are not part of the one percent, you are a "toadie" for them.

Bud, it wasn't about how many men you hired and worked,

Hall of famer, You read the post better than the rest.

River Runner, you kept trying to complicate the question

OK, here goes..........

JTD, let's take your math and apply it to an actual company. Bill Gates

gives his employees half of the monies he makes in business revenue.

By the time Bill gives 50% of his profits to hundreds of workers and his

overhead is always greater than 50%, you'll see Billy going out of

business around DOS 4.1.

However, your plan does work very well for bank robbers working alone.

Assuming the owner has another business that is profitable or is already wealthy enough to operate a business as a charity, we still haven't determined what is the fair market value of the widgets or if the quality of the widgets from the increased production is the same. If the Chinese widgets are of the same quality but much cheaper and the German widgets cost the same but have much better quality, the warehouse is going to fill up with unsold widgets and the widget factory will close and the widget laborer is going on unemployment.

Y'all don't understand the question.

If a worker, all by himself and working hard doubles his production, should his pay reflect his increase? Note management didn't do anything to help him, only his own efforts.

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I can't imagine how the wingnuts will attempt to pick this query to pieces, but I suspect they will try.

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If the company did not use any resources, then the increased production is most likely the result of on the job experience. Many companies pay an introductory (training) wage with pay raises later as the employee improves. At first it is expected that an employee's output will be much less than when he/she/it (I think that covers all gender possibilities!) gains experience and from the company's perspective, that employee might be overpaid. Even in a union job, doubling of pay takes years.

Back to the quality issue, if the increase in output means more defective units which require more warranty work or replacement; I wouldn't be expecting a pay raise either.

jt is just screwing around with people, he's been told many times by

many people in many ways. Nobody is that stupid except for him, so let

him think it over.

 Nobody is that stupid except for him, so let

him think it over.

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Jack, you aren't able to talk down to anybody, anywhere, anytime. From where you are at, everybody's intelligence is higher. 

OK, here goes.

It was a simple question that an elementary school student could grasp. Y'all tried to add anything possible to complicate it. Forget all the training, materials, payrole, 

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JTD - If's its Your business your starting up and/or running, then by all means, do what you have to do, Pay what you want to Pay; Expect quality products or Not So quality products, Make happy customers, or not so happy customers with your Thing product. Your business is either a "Not for Profit" or "For Profit" organization.  Once you know which it  is, then You have already answered your own Question as to what you would do...

  I'm Sorry, but you may be sincere about your question, but I don't know any elementary school students running/owning any "For Profit", manufacturing companies, producing a thing, to compare it too. 

Again, Your Costing Model is too Simplistic to be taken seriously as a viable growth company in today's world...

jt can only think in socialistic terms, give me half of the money you make

plus free benefits and equal bonuses. 

Can y'all not understand the question, If a worker raises his production, should his pay reflect the increase in productivity?

It wasn't about a business model or a "real world" business. It was just a simple question that apparently went way over your heads. If I could make it any more simple for you I would.

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Hypothetically, yes; realistically, there are too many other variables to consider.

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Depends on the circumstances of the hiring. If the employer hired someone with the expectation that the employee would increase production over time, then no. If the employee hired in to a company that pays a much lower training wage with spelled out pay raises based on time and performance, then that employee should get a raise based on company policy. If the employee doesn't like the arrangement, he/she/it can use the work experience at that company to find a better job.

You can't answer a simple question.

Here's a simple answer- No.  The worker agreed to a certain level of pay so the owner is under no obligation to double that pay due to doubled productivity. The smart owner though might place the doubly productive worker in charge of training new employees or supervising production with an increase in pay, or giving the worker a nice bonus at the end of the year. 

How about if you have a worker who is only half as productive as the rest of the workers. Do you pay him $5.00 per hour?  

If a worker, all by himself and working hard doubles his production, should his pay reflect his increase? Note management didn't do anything to help him, only his own efforts.

It wasn't about a business model or a "real world" business

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JDT: Then Your Answer is: 

Be Your Own Boss: Because you can certainly out work everybody else... and its all about YOU.

NO Support TEAMS NEEDED...

All by Himself, Go into your own business, since this is not a Real World Business, and pay yourself double, while doing subcontract work for the company selling the "Thing". After all, you said, management didn't do anything to help him, only his own efforts. (Don't forget, Mgmt. is the building, equipment, materials, maintenance support, IT support, Sales support, advertising support, paying for electricity to keep your machines humming, accounting dept, R&D for future growth, engineering dept.for improvements & Infrastructure, Safety, Quality Assurance, Customer Specification Auditor for the "Thing", all Directly or Indirectly facilitate the ability for him to produce the "Thing".

  **You just need to go to the "Rent to Own Metal Building Company" on Woodward Avenue or Florence Blvd.,or use the wife's space in the garage.  You Too Can Be Your Own Boss.. Set up Shop the Way You Want; offer hourly wages, piece mill production pay, pay for performance standards, be a low cost producer of "Things"...You get to Answer your Own Simple Questions..Pay Your Own simple Bills, Pick & Choose who you want for customers, Focus Only on Production, Pay Liability Insurance, (in case some employee sues the pants off you, for getting hurt) Etc..Etc.

Holy Schmoley... Your going to be making more than $20/hr., no, no, more like $160/hr... There's your Pay Raise.... Might think of offering incentives for high achievers who bring more money back to the bottom line for you. And you get to write the book, defining what you mean by "High Achiever" to everyone in your non-real-world business. People have their own idea of what constitutes "High Achievements". You can even write it for only the production worker making the "Thing" and No One Else who thought they contributed to helping him achieve 2/hr. I would know some Maint. guys who would be Pi$$ed, who serviced that machinery making the "Thing".

  As you can see, sometimes the simplest questions are much in-depth than appear on the surface, you have to peal back the layers to see whats at the core... Not always Cut & Dry Answers to all people, as you make it appear. It's a matter of perspective. It's like asking, Who has the Best Barbecue in the Area... Going to get a lot of different answers from lots of Different Folks.....With different perspectives. I don't care for Ribs, Love the pulled Pork...  Chicken occasionally.

 As you can see, sometimes the simplest questions are much in-depth than appear on the surface, you have to peal back the layers to see whats at the core... Not always Cut & Dry 

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It was cut and dried until a bunch of workplace toadies started making it complicated.