Home Forums Principles of Economics Hiring People means extending my time?

  • Hiring People means extending my time?

    Posted by Claudio on February 24, 2021 at 02:52

    Going through lesson 3. On the concept of times, I’m wondering if in the end, when companies hire employees, what they are ultimately doing is a form of extending their time, buy buying other’s people’s time.

    It sounds like slavery in this way, but to me it make sense,

    what do you think?

    Thanks

    Dorian replied 8 months, 1 week ago 8 Members · 7 Replies
  • 7 Replies
  • Gerald

    Member
    February 26, 2021 at 19:19

    If you don’t mind a very mechanistic perspective, maybe hiring people is more or less like acquiring capital machinery. Especially if you invest to train them.

  • Carlos

    Member
    October 23, 2022 at 16:34

    Hi.

    It cannot be slavery because the employee is voluntarily giving his time and effort to the employer. No coercion involved.

  • Francisco

    Member
    December 4, 2022 at 14:15

    I think both: hired sell their capacity to transform inputs in a higher value output; time & knowledge & strength (some professions) are the variables intrinsic to the transformation process. Yes you extend “time” but also “knowledge” & “force” to the organization, but mainly capaciy to “transform” inputs in valuable outputs.

    But I disagree about “no coercion involved”; that depends on your level of expertise, and if you are a ” medium or low-level” your strength on that trade is irrisory, you have to accept the trade you like it or not.

  • Hendrik

    Member
    January 24, 2023 at 08:37

    @kiocla I think you are spot on.

    There is this calculation that was pretty eye opening to me.

    Say you make 50usd per hour and you want to outsource all of your work that renders less than 50usd / hour, then you could hire 5 people and pay them each 10usd/hour and even if they are only a fith as productive as you are, it would still make sense to hire them.

    • John Williams

      Member
      March 2, 2023 at 17:39

      Right, because the work is still getting done. Only now, you have 100% of your time back to reinvest into more ventures.

    • Willem Fourie

      Member
      June 16, 2023 at 00:38

      If your skills are worth $50/hour, then someone accepting $10/hour will not have the skills to replace you

      • Dorian

        Administrator
        October 7, 2023 at 10:47

        It will be if the task $10/h person is doing is valued less than $50/h.

        For example:

        A consultant can charge his time $100/h. He needs to outreach people on social media to offer his service. It takes him 2 hours each day to do it.

        He can outsource that task to a $20/h person and have two more hours for giving consultations. So he earns $160 extra in two hours ($200 income minus $40 cost).

        • This reply was modified 8 months, 1 week ago by  Dorian.

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