Comment Re:Is negotiation a skill required for the job? (Score 1) 892
When is the last time you negotiated prices at the grocery store?
Every time you buy something at the grocery store, you are negotiating that item's price. If you refuse to buy an item because it's overpriced, the company that manufactures that item has the choice to either lower the price, try to market to a demographic that's willing to pay a higher price, or to attempt to keep selling an item at a price point at which the item won't sell.
By buying or not buying an item, you help determine demand for that item, thereby, setting its price. Basic stuff. Same set of principles applies to the labor market.
A few things about the reddit situation:
- reddit's staff will become less talented over time, as long as this policy persists, until they find some talent-price equilibrium that reflects reddit's salary policy.
- the CEO that implemented this policy will not suffer financially for doing so. However, it is likely that the talent of reddit's staff will decrease over time, and may result in her premature dismissal, possibly with an overly generous golden parachute.
- this salary policy has only a tenuous connection, if any, to the issue of women and men receiving an equal salary for equal labor. If reddit's CEO is not an absolute fool, the gender equality explanation is a rationalization intended to make an ill-conceived cost-cutting measure more palatable. If reddit's CEO is sincere in her explanation for this move, the board should remove her (and other companies should avoid her), because she does not understand certain fundamental labor market principles.
Here's another prediction: reddit will not save as much money as they think they will, because their HR department will be forced to dedicate more time to efforts to acquire adequate talent.