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mkt

When a paradise is lost go straight to Disney™
Premium Member
In your experience, what is the wage multiplier that serves as a benchmark for a raise?

I gave my direct reports leeway to determine the value based off of prevailing market rates, and we'd agree on those rates as part of a Q1 checkin.

100% of their total compensation as measurable value created was the baseline to get the standard 3% raise + "meets" for bonus calculation

150% for 4.5% raise + "meets"

200% for 5% + "exceeds"

Obviously it was flexible enough to allow for slow years, and exceeding other goals - so everyone would still get at least some raise and a bonus. And it worked until we were hit with a reorg and new leadership was brought in from silicon valley who couldn't understand a thing beyond coding and tech buzzwords.
 

Jrb1979

Well-Known Member
Emphasis is mine, but I can see where people could have made the assumption that was part of your argument. Hence a lot of talking passed each other.

Conversely, I don't think anyone on the other side of the debate was saying that people doing a $20/hr job should have the ability to work their way to earning $35 for the same work. Like a dishwater or someone in housekeeping.
I started at $15 an hour and am making $35 an hour now. I'm doing the same job in retail. The only difference is my company believes in taking care of their employees.
 

Tom P.

Well-Known Member
What rules are you talking about? Large corporations with 1000s of employees are different from mom and pop companies with 5 employees or 20.
Minimum wage laws apply to all but the tiniest employers. In most states, it's around 5 employees for minimum wage to kick in. So yes, that mom and pop company with 20 employees is having to adhere to the same minimum wage law as Disney.

My biggest beef with minimum wage is not that it should be based on the size of the company, but that a federal minimum wage should not exist at all. Minimum wage should be a state-by-state proposition at best, if not county-by-county. The idea that you can find one number that makes sense for an entire nation as diverse and massive as the United States is ludicrous. Paying someone $15 per hour in Manhattan is light years away from paying someone $15 per hour in Morgantown, West Virginia. It's just not possible to even compare the two.
 

flynnibus

Premium Member
It’s both—the job AND the employees’ role in filling that position.

Not really. Which is why unions allow pay scales... and nearly every public sector job does as well. Which are the most labor first environments you will have out there.

I understand your argument, I’m saying the inverse is true: if an employer wants the same productivity than the job was originally deemed worth paying, they’ll eventually either need to renegotiate with the employee or commit to the expenses of finding and training a replacement.
I imagine you don't actually have a say in any real company business in this regard because nothing you keep preaching about matches actual business at scale for the kind of roles we are talking about.

Yes, turnover is expensive, but know what's more expensive? Over paying wages in perpetuity. Which is why a company will accept a reasonable rate of turnover rather than trying to bribe every employee to stay.

Huh? What gives you this idea?
MATH. If a position sells $30/hr of goods.. I can't afford to pay someone $20/hr to staff that position.

Positions that are pure overhead are an expense that if it destroys my net margin, I have no purpose and no ability to sustain my business. So what will I do? I will reduce expenses.

Job pay is not independent of your business' revenue and expense model. It's very much part of it... and why your payroll is structured around the ROLES you have and you determine what you can afford independently of WHO you hire.
No, I’m mixing things together because employment isn’t as simple as you seem to make it out to be.
It is - especially in the low skill labor market being addressed here. It's how employers in both the public and private sector work. It's why there is such a thing as 'pay bands', and specific job titles and descriptions. These are not made up - it's how the world works for vast swaths of the job market. Even in white collar jobs... just there, there tends to be more leaway to rank and employee because the pay bands tend to be wider.

Employers make tough decisions all the time about employees because unlike your view of the world... there are actual constraints they face, and they can't hide from them. Sometimes you just gotta tell someone "I wish you the best..." as you let them walk out the door because you made the business decision you can't meet their demands. It's not because you're a robber baron, it can be because the role simply can't support that cost.

Sometimes it increases (try to find a licensed and competent plumber these days), sometimes it decreases (as your next paragraph explains, using the case of technology/automation).
Your plumber example is due to shrinking demand affecting market values - not that the plumber is somehow more valuable to the company. You are again, mixing different things.

If an employee shows up on time, works hard, requires little oversight, and it easy to manage, and yet does not take on any additional responsibility, her value will eventually exceed the top of the pay band that was originally negotiated. You’re saying she should then look for a different job if she wants more money. I’m saying the employer should sweeten the pot if they want to keep her.

'should' -- because you're going on emotions.

Eventually the employee will ask for things you can't meet, or you will decide they are replaceable. Then that employee will learn that "we love what you do here, but we can't meet your new demands".

This is part of being an employer. I honestly think many of you have never held a position of any actual authority or fiscal responsibility in your life.

I’m speaking from experience here: a company that thinks it’s pay schedule is fixed and shouldn’t be subject to renegotiation according to changes in the market, economy, and an individual’s performance is a company that (whether they realize it or not,) has a difficult time attracting and keeping reliable, motivated, and loyal workers who provide a consistent productivity and service.

Experience from the bottom looking up I assume.
 

JD80

Well-Known Member
Minimum wage laws apply to all but the tiniest employers. In most states, it's around 5 employees for minimum wage to kick in. So yes, that mom and pop company with 20 employees is having to adhere to the same minimum wage law as Disney.

My biggest beef with minimum wage is not that it should be based on the size of the company, but that a federal minimum wage should not exist at all. Minimum wage should be a state-by-state proposition at best, if not county-by-county. The idea that you can find one number that makes sense for an entire nation as diverse and massive as the United States is ludicrous. Paying someone $15 per hour in Manhattan is light years away from paying someone $15 per hour in Morgantown, West Virginia. It's just not possible to even compare the two.

Why are we talking about minimum wage laws? Specifically Disney or any other Orlando based business. Florida minimum wage is $12.00 and will be $15.00 in 2026. Many front and back of the house positions in Orlando pay more than that.

Disney already is paying cast members a minimum a few bucks more than that.
 

DisneyHead123

Well-Known Member
I think "employee value" and "stock value" are analogous in many ways. Yes, in theory people pay for stocks based on their value. And it's not that real world value has nothing to do with that equation, it is certainly one factor among many. Hopefully a major one. But it's also true that:

- People are often just bad at estimating value. If that weren't the case, everyone on Wall Street would win in their investments all the time, and every product or movie made by companies like Disney would be a winner financially. That is clearly not the case because people just - get it wrong. They overestimate value. They underestimate it. The concept of "value" is not some concrete data point that can really be calculated as an absolute.

- People are prone to being influenced by trends / "the next hot thing", and their inner circle. Executives and white collar employees will tend to lobby for increased salaries for executives and white collar employees. (You notice they have the opportunity to create reports explaining how much 'value' they've added to the company, while CMs don't get to write reports about how many people they dazzled with their smile, how many return customers they created by going the extra mile, and so on, which in theory at least is just as valid. I say in theory because in reality everyone bs's on those types of assessments, to my mind.) Minor palace intrigue or at the very least office politics come into play in a pretty significant way. People feel that if this sizzling hot company over here is hiring more of X job title, they should too, immediately! Politics and fad following, not value based, stuff.

- Supply and demand can be manipulated externally. Employees can band together and choose to strike if they really want to up their market value. Governments can tighten or loosen regulations on outsourcing labor overseas. Etc.

All that said - I'm still mostly a believer in a (regulated) free market. I think that's the best way of working out various complicating factors over long periods of time. And it seems to me that we are in a period of time where the pendulum is swinging towards workers. Covid placed a renewed focus on and appreciation for essential workers. Labor shortages abound. AI and automation are wildly unpredictable variables because it's hard to say where in the pay scale exactly they will replace jobs and it's hard to say where they will create new jobs as markets are able to branch out in new ways.

I do have my doubts regarding how much pay increases alone will be the end result, as a period of wild inflation followed the first round of pay increases (although there were other factors involved in that, of course). But I do think companies will have to become more employee friendly overall. Maybe that means perks like housing, which Disney is already experimenting with. Maybe it means a big focus on positive employee culture, a return to more park events for employees, and so on. Maybe more perks and supports in place for employees, clear paths towards advancement for anyone who works hard, tuition programs, and so on. But I think it is the case that this is a worker's market, at the moment. Disney has made a lot of cuts recently, but very few if any to their front line staff.
 

Lilofan

Well-Known Member
I think "employee value" and "stock value" are analogous in many ways. Yes, in theory people pay for stocks based on their value. And it's not that real world value has nothing to do with that equation, it is certainly one factor among many. Hopefully a major one. But it's also true that:

- People are often just bad at estimating value. If that weren't the case, everyone on Wall Street would win in their investments all the time, and every product or movie made by companies like Disney would be a winner financially. That is clearly not the case because people just - get it wrong. They overestimate value. They underestimate it. The concept of "value" is not some concrete data point that can really be calculated as an absolute.

- People are prone to being influenced by trends / "the next hot thing", and their inner circle. Executives and white collar employees will tend to lobby for increased salaries for executives and white collar employees. (You notice they have the opportunity to create reports explaining how much 'value' they've added to the company, while CMs don't get to write reports about how many people they dazzled with their smile, how many return customers they created by going the extra mile, and so on, which in theory at least is just as valid. I say in theory because in reality everyone bs's on those types of assessments, to my mind.) Minor palace intrigue or at the very least office politics come into play in a pretty significant way. People feel that if this sizzling hot company over here is hiring more of X job title, they should too, immediately! Politics and fad following, not value based, stuff.

- Supply and demand can be manipulated externally. Employees can band together and choose to strike if they really want to up their market value. Governments can tighten or loosen regulations on outsourcing labor overseas. Etc.

All that said - I'm still mostly a believer in a (regulated) free market. I think that's the best way of working out various complicating factors over long periods of time. And it seems to me that we are in a period of time where the pendulum is swinging towards workers. Covid placed a renewed focus on and appreciation for essential workers. Labor shortages abound. AI and automation are wildly unpredictable variables because it's hard to say where in the pay scale exactly they will replace jobs and it's hard to say where they will create new jobs as markets are able to branch out in new ways.

I do have my doubts regarding how much pay increases alone will be the end result, as a period of wild inflation followed the first round of pay increases (although there were other factors involved in that, of course). But I do think companies will have to become more employee friendly overall. Maybe that means perks like housing, which Disney is already experimenting with. Maybe it means a big focus on positive employee culture, a return to more park events for employees, and so on. Maybe more perks and supports in place for employees, clear paths towards advancement for anyone who works hard, tuition programs, and so on. But I think it is the case that this is a worker's market, at the moment. Disney has made a lot of cuts recently, but very few if any to their front line staff.
Striking at Disney means you will get fired. AI sadly is the future of getting some staff replaced nationwide.
 

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