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Comments Posted By Abbyrose86

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Balancing Incentives…

I do agree with you. I read a piece recently that laid out the situation just as you described.

Did you see it?

If you hadn’t, here is the link.
http://dissidentvoice.org/2008/05/beware-the-psychopath-my-son/

» Posted By Abbyrose86 On February 19, 2011 @ 10:56 pm

PW…I was going to write more about incentives structures and packages…but since you let me in how that was going to be your next topic, I figured I would leave it to you..and I would just concentrate on the bigger picture! πŸ™‚

» Posted By Abbyrose86 On February 19, 2011 @ 6:12 pm

Completely out of balance. I wish I could figure out how to change it…so that is why I’m writing about it, because perhaps if more people think about it and understand it, they will hopefully start saying no…and organizing for changes in the systems and with the powers that be…and I’m not just talking politics.

We need to start making demands with our pocket books and with our feet…complaining can be a good thing, if done right!

» Posted By Abbyrose86 On February 19, 2011 @ 6:11 pm

I don’t if the powers that be are going to be receptive to rebuilding. I think we have to start thinking in the terms of “Walk like an Egyptian” to really get their attention.

» Posted By Abbyrose86 On February 19, 2011 @ 6:01 pm

Employment at Will…what does it mean?

I love you for bringing that up!

Another important conversation! Why are we ignoring this disconnect?

» Posted By Abbyrose86 On February 20, 2011 @ 6:16 pm

Good point! Thank you for bringing it up!

» Posted By Abbyrose86 On February 20, 2011 @ 6:16 pm

Thanks for the link!

» Posted By Abbyrose86 On February 19, 2011 @ 2:09 pm

I don’t know and don’t get it either…if you figure it out, will you let me know?

» Posted By Abbyrose86 On February 19, 2011 @ 1:58 pm

Thanks for sharing your experience and the data truly backs up what you are saying.

I so agree with your last paragraph. SO SO agree…the two have to REALLY negotiate and not just one entity can take a hit…it will hurt the business and everyone (except for maybe 1 0r 2 execs) in the long run.

» Posted By Abbyrose86 On February 19, 2011 @ 1:51 pm

And YOU do it well! πŸ™‚

But it can’t be said enough!!!! πŸ™‚

» Posted By Abbyrose86 On February 19, 2011 @ 1:19 pm

Oh man!…It’s amazing what some unscrupulous people will do and it hurts everyone in the long run!

» Posted By Abbyrose86 On February 19, 2011 @ 1:14 pm

EXACTLY! EXACTLY! EXACTLY!

Thank you PW…so many organizations don’t realize that they aren’t allocating their resources properly and they tracking their costs appropriately either.

MISMANAGEMENT….is usually the problem!!

Thank you, Thank you so much for saying that!

» Posted By Abbyrose86 On February 19, 2011 @ 1:12 pm

Indeed…practical…what a novel concept! πŸ™‚

» Posted By Abbyrose86 On February 19, 2011 @ 1:06 pm

I’m rather taken with tiramisu! My idea of a gift from the gods!

πŸ™‚

» Posted By Abbyrose86 On February 19, 2011 @ 1:05 pm

I truly understand WHY companies do it, but I truly don’t think it is a good long term strategy for the company or for most potential employees.

I’ve done quite a bit of research on strategic planning, human resource management and labor law…as you can see! πŸ™‚

BOTH when from when I started my company and when I returned to school…so I’ve found that it’s one of those counter intuitive business strategies, that sounds good in THEORY and looks good in the short term (on the books) but actually COSTS MORE in the long run and negatively impacts company growth, brand and other harder to quantify aspects of the organization.

» Posted By Abbyrose86 On February 19, 2011 @ 1:03 pm

Sadly none of what man creates is perfect, unlike YOU Adonai! πŸ™‚

But collective bargaining truly levels the playing field between the big money of a corporation and that of the employees.

So it has it’s benefits…even though some individuals will manipulate any system for their own personal agenda.

» Posted By Abbyrose86 On February 19, 2011 @ 1:00 pm

Oh goody! We can compare! I can’t wait to read it PW!

I am doing mine more on the effect of perverse incentives and how they can cause the wrong outcomes for both companies and society as a whole.

I’m sure we will touch on some similar concepts though!

» Posted By Abbyrose86 On February 19, 2011 @ 12:58 pm

Facts are a beautiful thing!

» Posted By Abbyrose86 On February 19, 2011 @ 12:51 pm

And sadly most of them don’t even realize it! {sigh}

» Posted By Abbyrose86 On February 19, 2011 @ 12:16 pm

Thanks for adding your personal experience Kevin. I think it is important for people to share their experiences with how these type of laws really effect real people!

» Posted By Abbyrose86 On February 19, 2011 @ 12:16 pm

Good question.

Temporary employment agencies I think are a bad thing. Some headhunters are good and work for both parties well. It depends on the industry I think. I worked with a headhunter once and I was able to negotiate through him and my lawyer a very good contract with the employer. BUT that is not always the case, unless the headhunter specializes in a difficult to place field.

I have worked with employers who look at employees as assets and those who see them as liabilities. I’ve also read many studies on the subject…(hmmm…another topic for an article :)) and without exception those who treat their employees as assets (although this is often counter intuitive to some) SEE better profits, longer sustainability and more opportunities for sustainable long term growth. So I don’t understand the thinking of some who insist that the quality of employees and how they are treated is not important.

It all goes to incentives. Perverse incentives at the top often lead to this myopic thinking…but it actually ends up hurting most companies who employ such concepts in the long run. But the wrong incentives structures (too low of wages) for the lower end workers is a problem too. AS you get what you pay for…why would anyone making just minimum wage or slightly above, with little hope for improving their income in a company…give more than what that wage provides? They won’t…not in the long term. They may AT first give their all, but as time goes on, there is no incentive for them to give their all..if they aren’t being properly compensated.

Turn over is quite expensive for an organization…some studies say it costs at least 3x the yearly salary of the old employee to replace. The costs associated are sometimes hard for companies to quantify (if they aren’t tracking it properly) and so they often don’t realize just how much having pissed off employees really costs them.

(BTW…I am working on an article for next week on incentives and perverse incentives…it will tie in with this one and a short series on global trade…I hope to have them all completed next week! )

» Posted By Abbyrose86 On February 19, 2011 @ 12:12 pm

Exactly! Exactly Buddy.

Sadly too many in our society don’t have a thorough understanding of business, business concepts,marketing, contract negotiation,finance, the free market, capitalism,MACRO economics, our political system, philosophy, human psychology, etc…and don’t seem to understand how ALL things concepts WORK together.

So they hear certain terms and phrases that resonate and then look at their own lives and situation and apply the wrong concepts which is often NOT in their own best interests, because unfortunately they don’t understand what they don’t understand.

It’s frustrating, especially because most who DO understand all this are not as benevolent as you and I!

ANY concept can be used for good or evil…or something in between. It depends on the motives of the individual employing the concept.

Sadly, many very well schooled or innately knowledgeable people, who understand these concepts…who have selfish motives CAN use these concepts in a way to enrich themselves at the expense of those who don’t understand.

It seems to me a ethics thing or lack thereof…more than anything.

» Posted By Abbyrose86 On February 19, 2011 @ 12:03 pm

It’s sad, and don’t believe, it was the intent of the founders to give all the power to the corporate oligarchs!

» Posted By Abbyrose86 On February 19, 2011 @ 11:17 am

Thanks Paradise…that is why I like this site too!

Some of the articles on here are so well written and researched!

» Posted By Abbyrose86 On February 19, 2011 @ 11:15 am

Why thank you betty.

I agree, these are dark times…and educating the masses is necessary to help fix things going forward.

I am so proud of the people in Wisconsin who are fighting for our real rights! πŸ™‚

» Posted By Abbyrose86 On February 19, 2011 @ 11:14 am

Thanks Carrie!

» Posted By Abbyrose86 On February 19, 2011 @ 11:13 am

Thanks MIVOTE!

» Posted By Abbyrose86 On February 19, 2011 @ 11:13 am

I thought it was an important point to make and gets to the heart of the issue of WHY I believe the at will doctrine is a bad concept.

I love the idea of labor contracts, both for unions and individuals, from both the perspective of an employer and an employee.

I believe contracts really make it easier for both parties to manage their end of the business transaction.

Sadly, too many forget, on both sides, that an employee/employer arrangement IS A BUSINESS deal. The employee is selling their time, labor or expertise to an EMPLOYER. THE employer is buying that time, labor or expertise and is NOT BUYING the person…so labor contracts to ME, are just good business for both parties.

The at will doctrine is NOT a good idea as it places one party in a subservient position…AND is based on false concepts!

» Posted By Abbyrose86 On February 19, 2011 @ 11:12 am

I completely agree with you!

» Posted By Abbyrose86 On February 19, 2011 @ 11:06 am

Very good point KQuark

» Posted By Abbyrose86 On February 19, 2011 @ 11:05 am

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