Reducing Employee Bargaining Power

HR's Big Corporate Game Plan

Profitable Corporations have two opposing responsibilities:

• Recruit as much talent as the market can provide

• Minimize the wages paid to the talent

The way large companies solve this paradox is not by hiring the most talented employees, but rather by hiring replaceable ones. Profitable corporations will seek employees that they can:

• Rely on

• Re-educate

• Replace

In many ways, building a company will mimic building Legoland. Hiring managers won't look for uniquely talented individuals because they too expensive to replace and to risky to form dependencies on.

For example, you could hire a contractor to build a beautiful building. But if one piece stops working, fixing it will be insanely expensive. Not so if your structure is built in modular fashion. You can just go online and purchase a piece with the exact specificities as the non-performing piece. The fix is simple and the replacement part is a low-priced commodity.