This got me thinking as there were some controversial news of business owners who relied heavily on contractors to maintain its business where for the most part the rates were on the lower end as small businesses can’t afford high fees. But, in these cases apparently the businesses experienced huge success and with that they simply continued to use the same contractors at the same rates. As a business it makes sense where if it works then there is no point trying to get fancier and pay more right? But as expected, the criticism is more about the business having the funds to pay people more but choose not to as it becomes an ethics issue.
What would you do? I know a lot of businesses that grew with a frugal mentality continue to do that in the sense of they don’t upgrade to some lavish office if it is not necessary. That also means no pay raises or anything as well. I’ve read so many stories of businesses that grow big just to create a bunch of new positions with fancier titles where it didn’t make anything more productive. But they definitely paid more.
I think the line would be if the owners are living a lavish lifestyle and they say they can’t afford to pay people more then I can see that being an issue. By that It would be like in the workplace they specifically have air conditioning but then say they can’t afford to give other people the same. If they were all working in the heat to save money then that’s different. So, it really comes down to what life is like for the business owner in my view.