Are you paid according to the value you provide to your employer or customer?

Question

This is not necessary related to your qualification or experience or field but area where the customer or employee feels that you will add value (solution) to them.

Answer 1

i am because i am self employed, but most people are not

Answer 2

The customer is the driving force in business. Without the customer there can be no business. While people at the lowest tier may believe they are serving the boss, the boss also has a boss and the list goes on. The ultimate boss is always the customers. Bosses may appear to want nothing more than to line their pockets with money and, in fact, it may be true. However in order to do that they must satisfy the customer or the customer will go elsewhere.

Unless the business is some sort of a government protected monopoly providing a near necessity there will be other businesses out there competing for the customer and the customer will choose the company that which best satisfies their needs. If this exodus of customers happens often enough to your company eventually the doors will close and you will need to find other work.

Your question is a very good one. I have only scratched the surface of the subject. If you think of this as a daisy chain or a row of dominoes you might better understand. Business doesn't operate in a vacuum. For example, R & D fails to develop a product for a customer, as a result manufacturing has nothing to manufacture, at the same time sales has nothing to sell, management has nothing to manage, profits stop rolling in and eventually the company goes out of business because the customer has moved on to a company that can supply their needs.

Hope you can understand my ramblings. This is a very complex issue and not easily expressed in words alone. Graphs, sign language and some occassional yelling helps as well. Good luck.

Answer 3

If you are self employed you are pay to the value you have or the service you provide.
The cold hard truth is you are paid the cost it is to replace you.
If a company pays it's employees by performance , and you are a high performer it just may take several people to replace you yet it is the same cost to the company.

If you have a Job you are paid the amount it will take to have some one els show up next Monday for your job. Why does walmart or any company pay the rate it does? easy it can get some one els at that same amount of pay.

If others or a machine can do you job cheaper buy buy. Remember you are payed the cost of your replacements it may take there or more people or a machines, but that is what you are paid.

Answer 4

The company I work for pays it's employees by performance.
There is a salary range for each role, the employee is assessed each year to decide where in that range they should be.
This falls down when a previously high performer no longer meets expectations, as a persons' salary cannot be lowered.

Answer 5

If you work for Compass catering then you are definitely paid for the value you provide your employer.They are not bothered about customers only ridiculous profits.

Answer 6

neither its hypothetical depending on your decision making bosses ideas of pleasing his boss