Re:Macroeconomic Changes Have Made It Impossible for Me to W...
by WalterBright on Wednesday January 25, 2023 @03:10PM
(#34523483)
You're quite welcome! Enjoy using D!
The risk element goes both ways. An employee factors risk into what salary he'll demand. For example, people going to work for startups are going to demand lots of stock options to compensate for the risk that the startup fails. People accept lower salaries at established companies for the lower risk of the company failing. An employee will demand a higher salary to cover the risk of having to relocate. An employee will demand a higher salary for jobs that entail more personal risk.
It goes on and on. Risk is most definitely a factor in all negotiations, and risk is exactly another word for information asymmetry.
The risk element goes both ways. An employee factors risk into what salary he'll demand. For example, people going to work for startups are going to demand lots of stock options to compensate for the risk that the startup fails. People accept lower salaries at established companies for the lower risk of the company failing. An employee will demand a higher salary to cover the risk of having to relocate. An employee will demand a higher salary for jobs that entail more personal risk.
It goes on and on. Risk is most definitely a factor in all negotiations, and risk is exactly another word for information asymmetry.