With ever growing friction between the wealthy and the poor, many try to place blame on the elusive 1%. But what is the real problem here...why were
they able to acquire such a disproportionate amount of wealth in the first place? Put simply, the answer is: capitalism. We all allowed them to become
so rich by working in a system which promoted inequality. There is no one else to blame but ourselves.
So now you may wonder how do we shift out of a capitalistic system to one where wealth can be more evenly distributed. Well I think you don't
necessarily need to scrap the old system to bring in some serious changes. In a capitalistic system, the business world is seen as a sea of potential
where anyone can make it big time if they have the right idea. This is where the problem begins.
Corporations are considered separate legal entities from their owners, they can even take on debt and sign contracts. For this reason, it is literally
illegal for the owners to consciously act in a way which would harm or destroy the business. Apart from the minimum wage, there is no law which
ensures the human beings who keep the heart of the business pumping will get payed fairly so that they may have a reasonable standard of living.
In fact a corporation has no reason to make sure it's profit is fairly distributed between employees, a business is considered to be succeeding when
shareholders are increasing their profit whilst minimizing all other costs, including
the cost of paying employees fairly. That means shipping
the work offshore and a range of other cost cutting techniques.
It comes down to the fact that you either have ownership of a business or the business owns you. As an employee you are literally an asset to the
business. Cutting costs can include liquidating assets which are too expensive or a burden to the business. It can also include minimizing employee
payouts until the wages are verging on slave labor.
It promotes massive inequality where the rich keep getting richer and poor keep getting poorer. You need to be in it to win it...as it were. A dog eat
dog world. That's capitalism. Anyone can make it big but few ever do. Most people are simply working for the dogs. And this is where the true problem
is. The elite business people aren't playing a fair game in my books.
They may claim they have earned their wealth through hard work and good leadership, but the reality is the majority of their wealth has been generated
by other people who they hired to do the work. They may own the business, but this type of pyramid power/wealth structure is a problem that pervades
many aspects of our society.
I propose a different business model, where there's not only heavy focus on the health of the business, but also on the health of the people the make
up the business. This means shareholder profit is either non-existent, or virtually non-existent. This could be achieved in a number of ways that
don't necessarily require the obliteration of shares.
Ownership of a business will simply equate to decision making power, it does not mean massive profit. The wages of all employees (including the
owners, executives, and managers) are dictated by an equation which measures their output, work time, as well as the complexity of their work and the
quality of it with respect to the complexity.
C = complexity of work (1-10)
Q = quality of work (0-1)
O = work output (0-1)
T = time working (hours)
F = contribution factor
F = (OT) x (CQ)
By multiplying time by an output fraction between 0 and 1 (where 1 would highest work output of all employees), the result is a value that represents
the "real work time". The 2nd part is the complexity (10 being the hardest work) multiplied by a quality fraction (where 1 is the highest quality),
resulting in a value representing how hard their job is and how well they do it.
Then you multiply those two numbers together to get the overall work contribution of that particular employee. Please note that if you only had one
employee their work output would be 1. If you had two employees and one worked half as much as the other, the work output values would be 0.5 and 1
respectively. If both had the same work output it would be 1 and 1.
Now to figure out how much the employee actually deserves to get payed in relation to their contribution factor, you need to get the sum of all the
contribution factors for all employees. Next calculate your profit minus all expenses, except
the cost of wages/salaries. The following
equation will give you the dollar value of each employees contributions.
F = contribution factor
P = profit going to wages
S = sum of all factors
V = $ value of contributions
V = (F/S)P
How often you need to assess your employees and use this equation will depend on how often you pay your employees. You can also work out how much the
average employee wage will be by plugging the average contribution factor into that equation. There would also be a minimum wage to ensure that if
profits were too low employees would still get payed, but only if not in too much debt
So that is my simplistic idea. And it is simple. Just one way to pay employees fairly based on their contributions. Unfortunately, not many business
owners will like the idea of operating their business like this, because it means much less profit for them. Only fair and respectable business owners
would operate a business like this.
Any business that uses this structure will attract a high number of sse7r[5semployees due to the above-average rate of pay. They will also produce
extremely quality work in small amounts of time due to the incentives. Giving employees freedom to work how they want to work will also increase
productivity. Google has a thing where one day each week employees can work on what ever they like. Use the new business ideas.
The end result will be a business with a service and/or product that is far superior in comparison to competitors who are still stuck in the dark-age.
A fictional legal entity is treated with more concern than real human beings. People expect to sustain their livelihood by working for businesses,
they deserve some degree of fairness that doesn't steal their life away for nothing.
edit on 8-10-2011 by ChaoticOrder because: (no reason