Tuesday, September 1, 2009

Rules of Exploitation

Truth be told, people don't mind being exploited. Most people don't have a big plan in mind, so don't mind going along with someone else's big plan, and the group instinct tends to kick in and they work really hard together to accomplish something, feeling good about it. However, there are some rules to not never ever ever break when in a position to exploit the works of others. Here are a few.

1) Do not ever take too much money. This is probably the most important rule. No matter what you do, your cut can't be too high or you will begin to eat into your own sales, if nothing else. The cut taken by the RIAA, for instance, is so high that it has reduced sales of music significantly by setting the price on the upper end of what people will pay. The iTunes Music Store demonstrates this rather conclusively, as the prices there are much lower than the prices for physical CDs and the iTMS has seen its share of the market skyrocket.

2) Help people better themselves. This means giving them opportunities to advance, with more responsibility and the opportunity to make better pay. Believe it or not, bonuses are powerful incentives. A slightly lower base pay coupled with average bonuses that more than make up for it provide you with the opportunity to look a worker in the eye and say 'you are so important to us we are going to give you some extra money'. You can actually reduce payroll significantly through the judicious use of bonuses and you will certainly be able to retain your more effective employees more easily.

3) Parties, social events, so on. Show up. Shake hands. Don't expect to be fawned upon or even spoken to much, but, hey, these are your minions and you need to be seen around. Further, they need to relax in the company of their cohorts so that they develop better interpersonal relations.

4) Try to understand their needs and meet those needs. Once again, this can lead to lower payroll costs, as people get money to meet their needs. A happy worker is a cheaper worker.

5) Do your level best to match aptitude, attitude and job. Even if you have a worker who is very good at what they do, if they don't want to keep doing it, you may lose a good worker. Better to give them an opportunity to do what they want then to see them walk away entirely.

6) Provide a history of looking out for your workers. This means not firing them when things get rough. This means being ever so careful to clearly communicate to your workers that every effort was made before a given worker was let go. This means sometimes using company funds to help workers over personal hurdles such as unexpected costs. Once again, this will lead to lower payroll costs in the long run.

7) Don't ever, ever, ever mess with the pension. Doing so will cause people to simply not consider the pension part of the pay package, even if you put it back. Pensions are instruments of trust, and if you mess with them, your payroll costs for good employees will skyrocket.

8) If you're big enough, provide services such as lawyers, doctors and accountants to your employees. You'll find that you won't need to pay them as much when an accountant is helping them manage their finances, your lawyer is saving them pain and legal fees and your doctor is taking care of most of their complaints.

9) Keep them 'on the job' by providing someone to run errands, free food if they stay at work and social areas where they can 'get away' without getting away. Remember, a lunch with other workers can run to an hour and a half due to driving, waiting, so on, whereas a catered-in lunch can be as short as forty-five minutes, and the workers won't mind being shooed back to work so much if they are full of free lunch. Seriously, free lunch is one of the most effective motivators, right after free hooch.

10) Be careful to not overload them. This is particularly important with knowledge workers such as programmers, authors and so on. When they get burned out, their productivity plummets. Far better to let them have time off to recharge than to have them sitting in a cubicle hopelessly staring at the same block of text for hours. This may mean forcing them to go home, and certainly means that, whenever possible, they use a desktop that cannot leave work so they cannot take work home. Their spouses will thank you and that means less stress at home and thus less burnout.

I guess the point of this essay is there is a disturbing trend that has been going on for some time to treat humans as disposable, interchangeable entities, to lay them off at a whim and to shuffle them around like cattle. I have been through this experience as an employee a few times. Only one time have I ever worked for a company who got most of this right and I deeply regret quitting.

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