Would You Let Employees Decide Their Own Wages? (9)
Yesterday I met up with my next door neighbour who runs a start up called LiveOnDemand. He mentioned he managed to bring a guy called Ricardo Semler to speak in Amsterdam. I embarrassingly didn't know who he was...
Ricardo is most famous for running his companies in a democratic way. He has an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. Employees literally decide on their own salaries, how much they are worth, letting them come up with their own ideas etc,. By doing this he grew a company from $4 million in revenue, to $212 million in revenue.
Really interesting guy:
I wonder if this could work for all you affiliates who have a team working for you. Would you be prepared to give your team more control?
Absolutely not.
I have worked in companies and teams where the average take home pay was 7 figures in USD terms and on companies and teams where the average take home pay was less than 1 percent of that amount.
What have I learned?
Almost everyone thinks they are underpaid, even if they are taking home USD 5 million that year.
I would be more interested to know how the higher pay bracket people justified that amount.
Originally Posted by jennatalia
Originally Posted by cmdeal
Err.. I mean identify them :P
Originally Posted by cmdeal
when the people go on there they always offer 10-20% of their company, but want the sharks to put in big bucks and tons of knowledge.
No I would never do that.
You are the owner, you created the biz and taking all the risks.
Doesn't make sense to have employees ( people aren't invested as heavily in the company ) to take the key decisions, i.e money.
Technically, commission salespeople have decided their salaries for decades. I guess in a way that mirrors affiliate marketing. In either case, you and only you decide your salary by your actions or inactions.
It's a great idea but there are a lot of people who would NEVER be content, no matter how much you pay them.
That's why my team and I are actually working on a salary matrix for Filipino workers so we can suggest rates that would be fair for everyone involved.
Home > Networking Hub >