Deo Melgaco has a fascinating set of posts looking at Wal-Mart and Microsoft and the costs associated with employees. The highlight is the chart that shows the annual net income for the two companies, plus Oracle and Costco, compared with the number of people employed. Microsoft profitted to the tune of $12.6 billion last year on 71,000 employees, earning $177,450 per employee, while Wal-Mart earned $11.3 billion on 1.9 million employees, a profit of just $5,938 per employee.
Talk about inefficiency!
After looking at those numbers, I don’t see how you could argue Wal-Mart needs to pay its employees more or give them health benefits. As is, Wal-Mart cannot afford to both issue pay raises and continue to operate as a healthy company, because their income per employee is practically a sick joke. Wal-Mart already needs to find a way to fire many of its employees and operate more efficiently, and if it paid them better or offered benefits, that would force them to find a way to mass-fire employees even faster.
With 1.9 million jobs at stake, the idea of them firing half those people (which they should, if they want to be more efficient) is a scary one for how it would effect the economy.
I tell you this, if Wal-Mart fired 900,000 people, the illegal immigration debate would end as nearly a million Americans would do whatever necessary to take those jobs from illegal immigrants that you always hear Americans aren’t willing to work. That many unemployed, both the workers and the legislative bodies will find a way to enforce illegal immigration legislation and give those low-paying jobs to legal workers. And without the jobs for the illegal workers, I’d imaging illegal immigrant amnesty legislation loses its purpose in Congress.
Anyway, how did this turn into a political discussion? The point is, Wal-Mart earns just north of nothing per employee, Microsoft makes enough to pay everyone handsomely. The numbers on Google on even better, $288,270 per employee ($3.1 billion on 10,674 employees) while Yahoo makes considerably less, just $65,911 per employee ($751 million on 11,400 employees).
Deo also calculates Wal-Mart’s costs due to a 40% turnover rate at $1.36 billion per year.
Continue At microsoft.blognewschannel.com