Quote:
Originally Posted by cfrizz
It's not just tech corporations that do outsourcing. Every major company in the USA operates this way now.
All they care about is a never ending climbing stock price, so that means that they pay as few salaries that they can so that they don't have to worry about paying benefits and outsource as much as they can so they don't have to pay benefits.
Overtime is mandatory, but they will only compensate with time off rather than money.
Those that have to clock in and out HAVE to be paid money, but if that time is not approved you can expect to be warned not to do it again. Do it too many times and they can let you go.
The salaries they pay are low so that a good many have to work 2-3 jobs to make ends meet.
So what these companies end up with is a endless revolving door of people who come in maybe for a year or two then move on. In some areas, the jobs are so tough that they come in do their orientation, then start doing the job to decide the money vs the risk isn't worth it and bail within a month!
They spend a ton of money and time onboarding these people just to have them walk out in weeks, talk about a waste of money. But that's the acceptable business model these days.
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It really comes down how they can spin the books to the stock investor community. Every major company doesn't do business that way, but most of the major companies that are not closely (i.e. they don't have to worry about activist investors) held do. In general, when the founder retires or dies, the professional manager class takes over and forgets what made the company great. Amazon follows the Walmart model and is a bit of an outer in that regard.
Fortunately, there is finally starting to be debate over the wisdom of this business model. try googling fiduciary verse agent. There was a very good HBR article on the subject.