Wednesday, May 02, 2007

news: well-paid employees bring value

Remember how Circuit City fired its highest-paid salespeople a couple of months ago precisely because they were the highest paid? Well, now new financial figures are in and it doesn't seem to have helped Circuit City. They will report a loss for the first quarter and analysts think the firings were responsible.

Surprise, but the highest paid floor staff were also the BEST sales people for Circuit City. Industry analysts see them losing sales to competitors with staff better able to help advise people with these big-ticket items.

You know, I'm sure the assumption among Circuit City management is the same as it is at other corporations -- the highest-paid MANAGERS are paid better because they are good, and deserve that money. But their inability to make the same connection to the peons they hire at a pittance to actually do what Circuit City is supposed to do -- sell real items to real people -- very much brings into question their own competence.

Circuit City, hoist on its own petard. And its stock is down. Woo hoo again.



Post a Comment

<< Home