The issue isn't just the money. It's putting the people that otherwise wouldn't make $70K/year because their skills just aren't worth that much in the marketplace, in a bad position.
Most people want to improve their lives when they get a bump in pay (better house, lifestyle, etc), which is a good thing. But when you start relying on it, you will most likely lose it all when you lose your job because your market rate is considerably less.
It will also make these employees slaves to the company. They won't really have a choice, but to work there.
But I don't think the above will even be an issue because the economics of it won't make it that long. The company will most likely be out of business before it happens.
It's a failed and broken idea. The sooner this CEO sees this, the better.
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[ 2.7 ms ] story [ 17.8 ms ] threadMost people want to improve their lives when they get a bump in pay (better house, lifestyle, etc), which is a good thing. But when you start relying on it, you will most likely lose it all when you lose your job because your market rate is considerably less.
It will also make these employees slaves to the company. They won't really have a choice, but to work there.
But I don't think the above will even be an issue because the economics of it won't make it that long. The company will most likely be out of business before it happens.
It's a failed and broken idea. The sooner this CEO sees this, the better.