Productivity Pays – The CEO

Two separate articles came out on CNNMoney.com in the last few days. Those articles are:

GDP Growth Not Reaching Paychecks
CEO Pay: 364 times more than workers

What I conclude from even these two headlines is that the productivity gains seen over the last 7 years are resulting in higher earnings for large companies. The higher earnings give way to rewarding the CEO. But the CEO is not trickling down to his employees.

I’m curious as to what will, if anything, change this course? I suspect it will be the baby boomers. This group is content at the moment, but I can see a future where they are not interested in working at much as they are now. Higher wages might persuade them for some time, but it will only be temporary.
Is it that even though productivity is going up, the productivity is incremental and concentrated on low risk offerings? What I mean is that I don’t see any innovative products coming out. Nothing new is making me change my life. The iPod is 6 years old. The Prius is even older.
Is it the off shoring or the influx of cheaper skilled labor from foreign countries that is keeping the labor market balanced?
Is it the cost of benefits and the theory that they are truly more important than wage?

We should be in a sellers market, but we aren’t. Why?

About benleeson
My name is Ben Leeson. I currently work for a large financial company in IT. I went to school at Marist College in Poughkeepsie, NY. I graduated with a B.S. in Business Administration concentrating in HR. Professor William Brown taught me and I enjoyed his classes; even acquiring an appreciation for just about all things HR. I didn’t pursue a job in that field after college but I’ve kept up with it. This blog will further my fascination with all things HR. I hope to grow my knowledge of the area through thoughtful writings and spirited feedback. I will attempt to have a fairly routine style so anyone reading can come to expect certain segments. Please excuse my incorrect grammar and occasional misspelling.

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