I had a thought about employee salaries and “real” (unperceived) costs versus business costs. I’d like to see a study that takes several businesses and over a period of time (at least one calendar year or 4 business quarters) compares salaries and business costs. I’d like to test something though. I’d like one of the businesses (or perhaps a control group of them) implement the following:
- No employee can work more than 50 hours,
- All hourly (non-salaried) employees can only work 36 hours,
- and all work over the 40 hour mark earn at 2x the hourly rate.
I’m interested in how business would optimize the above working/earning patterns. Would costs for businesses increase or decrease? Would smarter business decisions be made? Would more be accomplished in a given time with capped hours? Would hourly workers be better utilized? Would salary overhead be reduced? And then how does our current business model compare to this capped approach?
Not that I’m an economist or business manager. And not that capping is needed or even beneficial – I don’t know. I’m just curious.