| Sunday, April 19, 2009 - 06:16 am |
Well I know that the higher the salaries, the higher the welfare, therefore meaning more production and a happier workforce.
However, what is the optimal salary index?
| Sunday, April 19, 2009 - 11:25 am |
That will depend on the product, how many upgrades you have, your supplies quality, and the current market situation.
Each type of product the percentage of total salary cost will vary. If the cost of salaries is lower you can raise salary.
If you have higher upgrades, higher supplies quality, and if the market price is higher than base prices then it probably makes sense to raise the salaries.
Most people use one salary level because it is much easier and we is lazy.
The other concern, especially for CEOs is competition with other corps and a country's military. If your salaries are low you might not have workers.
For your state corps don't forget that the workers are paying more than half of the salary back to you as taxes.
| Sunday, April 19, 2009 - 09:20 pm |
PS, dont all employees pay 50% of salary back to the state they are working in regarless of the state/public/enterprise ownership of the corporation?
I set my salaries to 800. I hear that the optimum is somewhere from 700-800, although I dont doubt that PS's summary that different corporation types have different salary optimums. I set my salaries to 800 and my fully upgraded state corporations have market value $300-500B depending on the product type.
| Monday, April 20, 2009 - 06:32 am |
OKay, so taking the philosophy of higher salaries are better, I have set my target index to 1200. If I notice it is too much I am thinking of lowering to 800.
| Monday, April 20, 2009 - 09:14 am |
yes the employees pay taxes regardless of ceo or state corp. If you own the country that houses your CEO's corporation you would probably want to treat the salaries as if it were a state corp. You might even raise them higher because the CEO corp produces higher quality. I extended the same logic to members of my federation when I was in large federation.
| Monday, April 20, 2009 - 07:07 pm |
PS, thanks for the tips. I do not have a CEO enterprise at this time, although I am now dabbling in allowing CEO-controlled corporations access to my workforce.
Adrian, I set my salaries to 1000 initally, and found that my earnings peaked at around 800. Then I reset them back to 800.
Also, I notice that the corporations that had salaries reach 1000 and then reset to 800 have higher productivity (155) than newer corporations that have only gone to 800 and been pegged there (153). Anyone know the reason for this difference? Should I raise all corporations to 10000000 etc and then drop them down to 800 to gain a bit extra?
| Tuesday, April 21, 2009 - 11:24 pm |
Many things in Simcountry have a long lag time. Your corps might be converging on 154%.
The productivity is also effected by other variables. I got frustrated and didn't sort them out. Rebel attacks and unsold products are examples. A recent game news hinted that things like the transportation and welfare index will be added to.
| Wednesday, April 22, 2009 - 09:21 am |
If you notice,Jinson Xu Country,he has salaries up to 2,200 with a whooping production of 225% on average.Another good one is Lance of Longinus,he has set is target at 1,200 and got the production of 176% on average.So check around the game and get the idea on which percentage you want.
| Thursday, April 23, 2009 - 08:50 am |
Lance of Longinus has a large number of country controlled public corporations. He also has taxes set at 75%. The goal is not to maximize profits of corporations. Instead Laguna is profiting at the expense of the other share holders.
Laguna also has the quality up to 370 which means he can gain more from the extra salary. That puts his choice of 1200 for true-public not far from Maxwell's choice of 800 for state corps (max quality 296).
He also has most of the original oil and electric companies but he has removed some of the numbers from others. Oil and electricity are companies that do well with very high salaries. Even with the 1200% salary the cost of raw materials is higher than the cost of salaries.
Salaries in oil companies should be higher than salaries in vacation companies. Laguna probably knows this and does not have time to bother. He currently has 20 countries on LU and is on 5 planets. It is much easier to set all corporations to one salary that seams to work.
If vacation had been selling closer to the base value of 180 Lance of Longinus vacation corps would have lost around $5B last game year. The economy on LU is mostly red so higher salaries are called for. Presidents on other planets might get better results with lower salaries.
IPOing your companies to your own CEO is a bug that the gamemaster has not yet fixed. Perhaps someone should point it out the W3C. A lot of the top economies exploit this loop hole.
| Sunday, April 26, 2009 - 06:46 pm |
Why is that a loophole? Anyone can buy stock in any public corps; that's the way stock markets work, even in the real world.
| Tuesday, April 28, 2009 - 09:32 am |
Actually in the real world USA the SEC has strict regulations that limit insider trading.
The game limits each country to 12 corporations owned by one of your CEO. Selling control to your own CEO is a loop hole.
| Tuesday, April 28, 2009 - 08:34 pm |
Actually, the SEC only limits insider trading to specific periods of time, to keep insiders (employees) from taking advantage of corp news releases or events that might sway the stock market price.
Public Companies can and are bought and controlled by the insiders (employees). It's not unusual for public companies to maintain controlling shares in the company.
SC is in line with the real world, this is not a loophole.
| Tuesday, April 28, 2009 - 09:49 pm |
You should consider whether or not you intend to have military in your country. Anything over 500 salaries is going to kill a war slave financially.
| Wednesday, May 6, 2009 - 01:13 am |
Wow... I recently saw someone with a salary index of 2995.... Needless to say I was shocked!
| Wednesday, May 6, 2009 - 09:12 am |
must have been an electric corp. *¥*