Poor Management: eCanadian Companies Being Run Into Bankruptcy
•
by Petz
There is a growing trend among owners today in eCanada, the moment then face difficulties they ask for congress to lower taxes. In some cases, a tax changes does indeed help but there is a larger problem that owners of companies have decided to ignore....unrealistic wages. The trend seen over the past several months is that new company owners have been offering wages that are unrealistic and economically damaging to both their own companies and to competitor companies. The productivity of a worker is determined by both their wellness and their skill level but new owners have failed to incorporate both these factors into the wages they are offering. This practice is totally unwarranted and unacceptable considering there are many tools available which allow you to calculate workers productivity and break even points so that an owner can offer realistic wages. The failure to run businesses properly has lead to two series of events that hurt the eCanadian economy. First, these unrealistic wages have given a false sense of wages to new citizens who continually jump for company to company upon reaching new skill levels, sometimes the jump is for a few cents. New workers since they are inexperienced and unaware of the economic situation, seem to always be looking for unrealistic raises because of the job offers they see and this has created an environment where companies cannot build a solid, loyal workforce. Second, due to unrealistic wages, we see a trend of numerous new companies that are created and then disappear within a few months as they are not financially viable and go out of business. This is mainly due to owners paying wages that do not equal the revenue that their companies generate. This has caused hundreds of gold to be wasted as owners pour in money to wages and the 20 gold start up fee.
I have operate my organization Petz Inc. for many months and provide realistic wages to over 70 workers but have also supplemented these wages by providing my employees with bonuses of wellness and food rather than offering outrageous wages. Owners need to help their employees gain high wellness and educate the new workers to see how companies must operate in order to be profitable. This includes helping employees to have wellness over 40 so that they can take advantage of the training wars and use hospitals to get their wellness into the 80 and 90s.
By writing this article I hope that owners take note and change their ways and that employees begin to realize that wages offered in eCanada are higher than in many countries and that this trend is severely hurting the overall strength of our economy. For those that need to relate my comments to a real world situation, look at the union wages of GM workers and how they crippled the corporation and now those workers are either losing their jobs or having to take massive pay cuts...
Let's get our acts together and fix the wage problem so that eCanadians will have solid jobs now and in the future.
Petz
CEO Petz Inc.
Congressman for Manitoba
Facebook
Twitter
Discord
Comments
or you could just hire people for what they are worth, bonuses are way to much work.
either way..bonuses or what they are worth makes sense....wages that do not equal productivity makes no sense...
cost > revenue = bankrupt
good points, things all starting business owners should take into consideration!
this also takes away workers from well run companies that would otherwise be very successful, and forces them into bankruptcy as well, and very few companies will be able to escape that trap.
The problem is that there is too much competition between canadian companies and not enough labour to supply all of them.
no point in having alot of companies if they all go broke too
I think the problem is an influx in the amount of stupid, impatient business owners
And interesting article, but I see difficult that the owners have a pact for wages for more than a month. There's always someone who breaks the market 🙁
there is no point of a pact for wages...what is needed is common sense and some loyality from workers
We are less than half the size of the United Kingdom but we have 50 more companies than the UK.
Is difficult to find common sense. Almost all the new owners think they are going to break the market and rise their own multi-corporation 😕
I talked about the pacts, because it's what some people offer me when I had companies. But they never last for more than a week. There's always someone who thinks can kill the competence taking all the good workers with better salaries... it's difficult to find common sense 😉
If it continues on for a few more weeks Moffington will open it up in closed congress. We've been assured of this in the eCanada forums Economic Centre under 'The Job Market: Insanity or Necessity?'.
Thank you Petz for so promptly and concisely explaining some necessary facts to business owners. It's the current wage climate making things so tight, not low import taxes. It wouldn't hurt if eCanadian companies weren't price warring each other to such a degree.
Henry Ford said "An industrialist should sell the highest quality product possible, for the lowest price possible, while paying the highest wages possible."
But driving a company into bankruptcy to do so doesn't help anyone.
I think moff should threaten all company owners, but especially land companies to lower their wages if the wages don't come down to reasonable level in 1 week, he will lower all import tax to 1%!!
Hire them at high prices, fire them if their wellness is low. If their wellness is high, raise it a wee bit more and you'll keep the employee. That's what I do.
Maybe this could all be dealt with by paying based on productivity, i.e. piece work. There would be that much more incentive to keep wellness high.
Very good article; voted.
as an employee I can attest to the great leadership of Petz. Inc. There is definitely a focus on employee wellness which is good for a change!
Hear, hear! Some very good advice to many enthusiastic would-be entrepreneurs, who mistakenly assume that starting a company is just the natural next stage of the game and will unlock riches untold. Take a look at the many companies for sale, they all started with the same ideas.
There's a second problem here, which Petz doesn't gloss over, but doesn't given entirely full treatment either: employer loyalty. Workers need access to Q3 food or higher if their wellness is to rise. That means employers need to discuss with their workers what the situation is as the relationship begins. If employees were made to understand what is happening at the start, namely, "I'm losing money employing you NOW at this wellness level, but I'm prepared to keep doing that in the short term if you are committed to staying with the company as your wellness and skill rises", then workers would be more likely to stick around. As it is now, they mistakenly assume that no matter what their skill and wellness, their employer is profiting from their work. And if that's the case, why wouldn't they move on to better wages as soon as possible.
The alternative is a kind of lottery. A group of employers all spend money training the employee, but only the last one will profit from all the losses the others put into increasing that employee's wellness.
http://www.erepmarket.co.cc/index.php" target="_blank">http://www.erepmarket.co.cc/index.php
One of the many site to help new company owners.
i have no problem with the company that i run
Finally it's in the news, I was tempted to geta newspaper just so I could say this.
After starting my own business I've seen how the wages (at least in the land sector) are too high.
I think the biggest problem here, is that like in RL, people are starting companies without any clue of how to run them, or without doing prior study. I also have a hunch people are starting companies because they have little else to do 😉
Just a thought:
Honestly, just how much loyalty can you expect from an employee who doesn't earn enough to survive?
Employers want to maximize their profit, sure. But employees want the same. So the employers strategy is good and healthy, while exactly the same thing - when done by employees - is ingratitude? Everyone wants to maximize his profit. That's capitalism for you. If your employees' wellness is down, ask the government why the hell there are no training wars.
I work for Petz and find that it's the best place I've ever been with so far. Keep it up
You can make more a lot more money in Europe right now. Lowering wages will just make people leave.
I agree with The Nest, in the land sector the wages are just so high and the products are just so cheap. You can't rival the other companies without losing money.
I am currently working in the land sector and am very happy with my employer. I plan to stay loyal and continue to work at this company for quite some time. However, I would be interested to know what people feel is fair compensation for work (based on skill level and wellness)?
Nice article! Voted!
I have to say that I do agree with some points, but disagree with others. I work in the land sector and am happy with my company, Schwarzes Gold. From what I see, they make a fair profit from my work and I make enough to keep my wellness above 40. The problem is no jobs higher up. Once I reach 2 skill points, I'll have to switch companies to get an appropriate wage. If employers are willing to create new jobs for their employees when they reach a higher skill level, and are smart enough to give reasonable wages to start with, the economy will eventually fix itself.
All in all, I think the problem with loyalty is mostly due to lack of jobs within the company at the employee's skill level.
gabriel as you go up in skill within a company u don't need to apply for another job..your owner can just alter your wage