Simcountry
Forum General Optimal salary level calculation

Optimal salary level calculation

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Dominik

All worlds
17 Jan 2016 15:32Link
Hi everyone,

Is there a possible way to calculate the optimal salary level for state-owned enterprises? Mine are set at 300, and I will increase them to 320 pretty soon.

Thanks in advance!


Dominik
Country: 'Republic of Selene' on KB
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jammiebrown1978 brown

All worlds
17 Jan 2016 15:36Link
IMO 300 is optimal any higher will not help
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Aries

All worlds
17 Jan 2016 16:21Link
400
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Dominik

All worlds
17 Jan 2016 20:04Link
Thanks for the replies :-)

Let me rephrase my question: how do you determine the most optimal salary level, whatever it may be? Is it just trial and error, or is there a certain philosophy or other method behind it?
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John West

All worlds
17 Jan 2016 22:42Link
Best philosophy is generally to just listen to whatever Aries says because for whatever reason he just knows.
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Aries

All worlds
18 Jan 2016 02:41Link
One, this should really be on the beginners or help forum. Two, as the one asking the question, shouldn't you establish the criteria of your question? What is optimal depends on your goals. I often find this an obstacle in providing answers in the game. You first have to understand what you want before you can plot a path. So, what are your goals and what role does your state corps play in that?
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jdlech

All worlds
18 Jan 2016 03:23Link
HOW does one determine the optimal wage of a state owned corporation for:

Goal 1: optimal profitability for the corporation itself.

Goal 2: optimal revenue of the state.

Goal 3: maximum production quantity of a particular weapon and/or munition. (surely there's a point of diminishing returns)

Discuss.

Not just what it is - Aries pretty much has it down to a science after conducting many experiments over several years) but what is the best way for a player to determine this?

I tend to agree with Aries. Your company may not get much more production beyond 300%, but your state does get more revenue when they make 400%. But the higher it is, the more it costs your corporation - in the form of slower growth.
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Dominik

All worlds
18 Jan 2016 18:23Link
Thank you for the answers! Especially jdlech, you clarified a lot already! :-)

Mainly the first two goals: optimal profitability for the corporation itself (so, it will rise in value as quickly as possible) and optimal revenue for the state (because I will sell off all the shares, so I can get the higher 'income from enterprises' and extra workers through special clinics and back-to-work schools).

So, what is the optimal salary for the following two situations:
1) to increase profitability, so it will rise in value as quickly as possible
2) to have an optimal revenue for the state after having sold almost all of the shares (the target for the new optimal salary level for that will be set then right before the last shares have been sold).

Thanks in advance! :-)
(And I will ask my next questions in the beginners/help section of the forum. My sincerest apologies for ap
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Aries

All worlds
18 Jan 2016 18:46Link
1. 300, though salary has a minimal effect on market value compared to other factors such as the market for the product it sells, supply quality, process upgrades, country tax, and profit sharing. Keep in mind that increasing market value is largely useless unless you intend to IPO.

2. 400 gives most overall state revenue. If you choose to IPO and sell almost all the shares, a new owner would have little difficulty obtaining a controlling stake in your corp giving that player the option of changing any corp setting, including salary, or even choose to move the corp out of your country. If you choose to increase revenue through "income from enterprises", the choice of salary will be out of your control unless you buy the controlling stake with your own enterprise.

-It isn't about "disturbing people here". Some players actually seek answers on the forum and will look in the logical place for it.
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Dominik

All worlds
18 Jan 2016 20:44Link
Ah ok, thanks for the answers in any case, it really helps a lot! :-)

That was exactly why I have put my question here (given the history of threads in this section), but apparently I was wrong. I will ask my future questions in the beginners/help section from now on :-)
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WildStallion

All worlds
18 Jan 2016 22:22Link
It amuses me that certain players seem to think that they are actually the GM and can tell other players where they can post their questions. The questions asked can fall into any of the categories ie general, beginner or help, so can be posted in any of the three if they don't get a response to the post in the others.
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Aries

All worlds
18 Jan 2016 23:19Link
It amuses me that some post to a question thread and offer no input on the topic and have no record of helping players with game questions whatsoever.
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John West

All worlds
18 Jan 2016 23:34Link
It amuses me that which Aries just said hahahah
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WildStallion

All worlds
19 Jan 2016 10:33Link
Your "record collection" is obviously out of date then as it does not contain the "records" where I have offered advice and help to players.

You are correct though that you do, do a good job of offering constructive advice to new and old players alike.

All the best W.S
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jdlech

All worlds
19 Jan 2016 15:13Link
I just noticed that there is but one letter separating amused from abused. Which reminds me that my personal moral philosophy frowns upon Schadenfreude. Though I sometimes feel it, I also believe it immoral. The torment of others should be reserved for threads designed for the torment of others, imho. Do as you will, of course. I'm just waxing philosohpical.
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Roving EYE

All worlds
20 Jan 2016 00:38Link
optimal figures 197, 263 + - 3% depends on your goals
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Dominik

All worlds
21 Jan 2016 12:59Link
Thank you, Roving EYE :-)

Could you tell me how these levels are calculated? Or do they depend on trial and error and experience?
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BorgQueen

All worlds
22 Jan 2016 15:51Link
Btw no matter if you consider salary of State or CEO Corps you might want to compare the salary levels of other Corps in the same country.
If there is a workforce shortage you might consider to increase salaries a bit above anyone else as, within reasonable boundaries, you will always make more money with 100% hiring and paying your workers more then saving on salaries and loosing production.

If its your state and you have CEO Corps in it you also might want to build more Corps then your country has workforce for, but only a little more.
As long as you check and adjust education regularly this will help you keep unemployment low -> less social security costs.
It also might lead CEOs in your Country to increase Salaries to keep their hiring at 100% so increases your State Revenue in Taxes and Contribution to Health/Edu as does low unemployment.