Well, one could argue that since this community is called “work reform”, the point of this infographic is to make workers aware of how much more companies would pay them. This infographic does not accomplish that.
If your company buys a chair for 1000€ and you sell it for 1001€, the company got a revenue of 1001€. You cannot ask more than 1€ to be paid to you for it though, since the company would be losing money. That’s what is called a profit margin.
This infographic shows companies from a wide range of sectors, and a wide range of profit margins as if they were comparable. You cannot compare the wage/revenue ratio of a supermarket to a tech company, since they operate at different profit margins.
You can compare wage/(profit+wage) ratio though, as it measures which part of the pie goes to the workers and which to the company, and that is universal.
It is true that it’s hard to measure “profit”, but that fact doesn’t make this infographic any better.
Well, one could argue that since this community is called “work reform”, the point of this infographic is to make workers aware of how much more companies would pay them. This infographic does not accomplish that.
If your company buys a chair for 1000€ and you sell it for 1001€, the company got a revenue of 1001€. You cannot ask more than 1€ to be paid to you for it though, since the company would be losing money. That’s what is called a profit margin.
This infographic shows companies from a wide range of sectors, and a wide range of profit margins as if they were comparable. You cannot compare the wage/revenue ratio of a supermarket to a tech company, since they operate at different profit margins.
You can compare wage/(profit+wage) ratio though, as it measures which part of the pie goes to the workers and which to the company, and that is universal.
It is true that it’s hard to measure “profit”, but that fact doesn’t make this infographic any better.