though still very far off the mark of paying employees according to the value that they produce
Employees aren't really compensated for increases in output that are achieved through standard business practices, technology, automation, etc.
That's because their relative input remains the same.
Same input, same salaries.
If I'm starting a business mass-producing widgets and I fund the machinery, process development, and software to produce that -- why should I pay extra for the employee who really only has to push the big red button to start the machines going every morning?
Just because a lot of value is produced when he pushes that red button doesn't mean that he should be highly compensated.
Employees aren't really compensated for increases in output that are achieved through standard business practices, technology, automation, etc.
That's because their relative input remains the same.
Same input, same salaries.
If I'm starting a business mass-producing widgets and I fund the machinery, process development, and software to produce that -- why should I pay extra for the employee who really only has to push the big red button to start the machines going every morning?
Just because a lot of value is produced when he pushes that red button doesn't mean that he should be highly compensated.