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The problem with salaried employees is that it encourages the "all-you-can-eat" mentality with an employee's time. Economics students will understand that a ra
by melindajb 11y ago
The problem with salaried employees is that it encourages the "all-you-can-eat" mentality with an employee's time.
Economics students will understand that a rational actor will consume a free thing until the marginal utility of the next unit is zero.
And for a company, the marginal utility of your time is NEVER, EVER Zero. Unless you're a pilot, maybe, or the control room operator of a nuclear plant.
So, even if you're 10% as productive as normal,that's still incremental labor at no additional cost.
But for you, that negative utility affects your health, your family, etc.
The solution is serious and strict laws that prevent employer abuse, and to prevent young people from killing themselves and undermining the value of all labor. They used to be called unions, but I'll settle for government regulation.
Another option is to start your own business, where you decide these things; or to work as a consultant and get paid by the hour. It's AMAZING how much more efficient some of these startups are, or get, when you charge them hourly.
When you give your labor away for free you devalue it, and everyone else's around you.