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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: GraceZ who wrote (56138)3/17/2006 7:29:07 PM
From: Mike Johnston  Read Replies (1) of 110194
 
i>I base their pay on what I need to keep them working for me
All true, productivity is the primary factor. If productivity tanks, your profit goes down and you are out of business.

But assuming constant productivity, if CPI jumps 10% and the employee gets only 2% raise he might bolt (this is equivalent to a wage going down).
And the potential replacement will demand more as well.

So the CPI can be one of the factors in determining pay.
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