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Response to 2Design (Original post)

Fri Jan 18, 2013, 11:34 PM

3. They're cutting their own throats, really

because instead of a core of full time, stable employees they're tying themselves to high turnover and high trainee expenses as people leave as soon as they can find work with benefits and new trainees need to be hired.

Not only that, but the work still needs to be done. They're choosing to do it with more people they treat like shit instead of fewer people they treat well. That's going to increase bookkeeping costs as well as encourage things like absenteeism.

The whole thing will make a few bean counters look good short term. As a long term business model, it isn't going to work. Expenses will far outweigh any payments they would have made toward employee health insurance.

However, business schools have always seen labor costs as a liability, completely forgetting that the companies would have nothing to sell without labor. I suppose most companies will treat their employees poorly.

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