Here is a scenario:
A project/job needs a bid. The employees of the company are asked to input their time estimate. They do, and it turns out that the job has a tighter budget than the time required at the normal rate. The boss then decides to lower the price to get the project. Now they can’t have it eating into their profits. What do they do? They make the employees work long hours (because you can legally require tech workers over a certain wage without paying overtime). This shifts the cost to the employees.
This is common in job shops, but it shouldn’t be. This isn’t a good business model. This isn’t sustainable.
Sure. You could say it’s better to take a hit in times of need. What about when the company exceeds it’s mark? I’m willing to bet these job shops aren’t profit sharing.
This needs to be a give and take situation. If all you do is take, then you’ll have a mutiny on your hands. Or more likely, a never ending revolving door of needy employees.
No one should accept these terms. Deferring Cost to the employee is not a good thing! Whether that cost be in labor or currency, it doesn’t matter. It’s still shifting cost.
Instead of making the employees eat the cost, the company should absorb the cost. It’s worth it just to break even temporarily so they can keep their good employees. Or have the employees work on it strictly in their downtime. Don’t make it a priority. Get creative, but don’t push your costs on the people working for you. That is the opposite reason they are there.
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