Hidden Costs

Recently many of our largest and fastest-growing companies have been eliminating support positions. As an example, secretarial staff has been cut repeatedly. If there are no secretaries that must mean that there is no expense associated with memos, and all memos are now free—right? Of course, this doesn’t make logical sense. Here’s how it works. Management presumes that the technical people will assume an additional burden and do their own memos—after all, they all have very costly workstations with all the latest tools. If the technical and middle-management staff needs secretarial support, it can be hired from a temporary agency at a much lower cost than the cost of retaining a permanent hire.

What’s the net result here? Prior ...

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