Pardon me for getting on my soapbox a bit (of course, you’re probably used to it by now), but I’m getting tired of hearing people talk about “creating jobs” who have never created them.
The creation of a lasting, productive, private-sector job is very simple. A businessperson decides to take a risk because he/she feels that the resulting profit will be worth the risk. That’s it – simple. It doesn’t matter whether the person is a manager, a salesperson, or a shipping clerk. More reward than risk = new employment. More risk than reward = no new employment.
Businesses increase management staff because they believe that the new manager (for instance, a sales manager) will help make their subordinates productive enough that they will not only pay for the manager, but produce profit beyond simply paying for the manager.
Businesses hire salespeople because they believe that the payout in profit from the rep’s effort will be multiples of the compensation. Same with shipping clerks, invoice processors, or anyone else in the building. The size of the business doesn’t matter; no business – no matter how large – employs addtional people without the expectation of an expansion of profits or capabilities in return.
Hence, any “job creation” strategies should seek to reasonably adjust the risk to reward mix in favor of reward.
OK, off the soapbox.
