When a business owner hires unskilled labor, they expect these employees to be less productive than those who possess specialized expertise or training.
It may not even be that they are productive on their own, but that they have essential skills or knowledge that allows the business to function. For example: they may be one of few people who know the ins and outs of a specific mission-critical system, and that knowledge may not be easily transferrable.
It’s not just how much you contribute to profits, it’s also how easily you can be replaced. If you contribute a lot to profits, but you can easily find 100 others who can replace you, you’re still not getting a big paycheck.
It may not even be that they are productive on their own, but that they have essential skills or knowledge that allows the business to function. For example: they may be one of few people who know the ins and outs of a specific mission-critical system, and that knowledge may not be easily transferrable.
It’s not just how much you contribute to profits, it’s also how easily you can be replaced. If you contribute a lot to profits, but you can easily find 100 others who can replace you, you’re still not getting a big paycheck.