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Its Time to Rally the Troops
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<blockquote data-quote="mule" data-source="post: 303538" data-attributes="member: 12014"><p>This is not entirely true. Increasing the volume would increase revenue, but it would also increase costs. Cutting payroll expenses is the easy way to lower one variable cost of the entire variable cost structure. All managers know this. Most supervisors believe that the only way to reduce costs is to make employees more productive and hire less employees or to cut the hourly rate. The key is to keep wages moderately increasing, continue to increase volume, and look for ways to build efficiency into the system. Supervisors don't build nothing. They take orders like the rest of the hourlies. Actually, there is very little difference between the hourly and supervisors. </p><p> </p><p></p><p> </p><p>Until recently, you did not have to have a college degree to be a full-time supervisor. In fact, the college degree is not even necessary for supervision. UPS has its own school to teach supervisors how to pull levers. </p><p> </p><p>I would also like to respond to your assumption that having a degree is somehow going to bring you higher wages. A degree simple states that you have passed the examines and courses that are required by a university. It also states that you are educated to a certain degree level. How does this relate to higher wages? Do you need JD or a law degree to practice law? No. You must have passed the BAR examine to practice law in a particular state. Most companies use the degree requirement as a filter. By requiring a degree, a company builds efficiency into its hire process; thus, the company is able to reduce search and hiring cost. See, you don't need to cut wages to keep costs down. </p><p> </p><p>What determines wages? Most small companies use the market to determine wages. Larger companies use market and impact. What is impact? Wages are determine based on how much impact the position has on the bottom line. In others words, if a managers is able to efficiently operate an area, the managers is able to reduce costs. By reducing costs, you increase profits. What if the manager is not able to efficiently operate his or hers area? The manager can simple reduce payroll expenses. This move always makes the manger look like he or she is operating efficiently. But as you can see, the manager just simple laid people off and required less people to do more work. Does the manager's manager care. Not if the existing employees stay, and the manger's costs are reduced. </p><p> </p><p> </p><p></p><p> </p><p>How else do you keep the knowledge at a company? If you eliminated pay increases, your turnover rate will most likely increase. You can't build a successful efficient operation if your knowledge base is walking out the door. It cost money to train employees, and it takes lots of time before these employees are efficient and productive. This would not be the mindset if you are supervisor that views employees as cattle to herd into the door and push them until they drop or quite. </p><p> </p><p>If UPS continues to expand, look for more efficient means of operating its business, treats its employees with the highest regard, and continues to build its image, UPS will be very successful. </p><p> </p><p>Remember, economics is the study of the distribution of resources. Nearly everyones argument with a corporations is how to distribute the companies resources. If an employee makes $100,000 a year, it might not be a big of burden if the company is making profits in the billions. Who else gets a large portion of the profits? The share holders. The ones that are not working every day at UPS.</p></blockquote><p></p>
[QUOTE="mule, post: 303538, member: 12014"] This is not entirely true. Increasing the volume would increase revenue, but it would also increase costs. Cutting payroll expenses is the easy way to lower one variable cost of the entire variable cost structure. All managers know this. Most supervisors believe that the only way to reduce costs is to make employees more productive and hire less employees or to cut the hourly rate. The key is to keep wages moderately increasing, continue to increase volume, and look for ways to build efficiency into the system. Supervisors don't build nothing. They take orders like the rest of the hourlies. Actually, there is very little difference between the hourly and supervisors. Until recently, you did not have to have a college degree to be a full-time supervisor. In fact, the college degree is not even necessary for supervision. UPS has its own school to teach supervisors how to pull levers. I would also like to respond to your assumption that having a degree is somehow going to bring you higher wages. A degree simple states that you have passed the examines and courses that are required by a university. It also states that you are educated to a certain degree level. How does this relate to higher wages? Do you need JD or a law degree to practice law? No. You must have passed the BAR examine to practice law in a particular state. Most companies use the degree requirement as a filter. By requiring a degree, a company builds efficiency into its hire process; thus, the company is able to reduce search and hiring cost. See, you don't need to cut wages to keep costs down. What determines wages? Most small companies use the market to determine wages. Larger companies use market and impact. What is impact? Wages are determine based on how much impact the position has on the bottom line. In others words, if a managers is able to efficiently operate an area, the managers is able to reduce costs. By reducing costs, you increase profits. What if the manager is not able to efficiently operate his or hers area? The manager can simple reduce payroll expenses. This move always makes the manger look like he or she is operating efficiently. But as you can see, the manager just simple laid people off and required less people to do more work. Does the manager's manager care. Not if the existing employees stay, and the manger's costs are reduced. How else do you keep the knowledge at a company? If you eliminated pay increases, your turnover rate will most likely increase. You can't build a successful efficient operation if your knowledge base is walking out the door. It cost money to train employees, and it takes lots of time before these employees are efficient and productive. This would not be the mindset if you are supervisor that views employees as cattle to herd into the door and push them until they drop or quite. If UPS continues to expand, look for more efficient means of operating its business, treats its employees with the highest regard, and continues to build its image, UPS will be very successful. Remember, economics is the study of the distribution of resources. Nearly everyones argument with a corporations is how to distribute the companies resources. If an employee makes $100,000 a year, it might not be a big of burden if the company is making profits in the billions. Who else gets a large portion of the profits? The share holders. The ones that are not working every day at UPS. [/QUOTE]
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