Quote:
Originally Posted by eweissenbach
The risk in buying a MacDonalds franchise is very minimal. As I said, he deserves a nice return on his investment and considering the risk of his capital. The employees are being paid what they are worth, or by your impeccable standards, more than they're worth? By what standard? His income has everything to do with it, because one should calculate the value of the employees based on their contribution to generating that income. He should not give people money for nothing, if they generate no profit they should be fired, but if they generate profit they should share in the success of the operation. I don't know what he gives to charity nor what he pays in taxes, but he seems to have plenty left over to get by. My children own several businesses and are very successful, and to their credit they compensate their employees very well with incentive bonuses if the company thrives.
|
Got to disagree on the bolded part. Employees are valued based upon what their skill set is worth to any potential employer. The rarer or more difficult to replace the skill set, the greater the value to the employer and the greater the compensation. That the employee adds to the profitability of the company relates more to whether the position or employee will be retained.