Originally Posted by
BufordT Justice
You’d think shelling out $2.5 MILLION per month in new hire bonuses would threaten the business model, but I guess not.
Heres the sad part though, it’s not costing them 2.5 million. The majority of those “bonuses” are being paid back to the company when the new hire leaves in their first year. So, that scheme may keep a few people around and it will cost F9 a little bit of money, but they’re getting a lot of it back.
The whole point of the “bonus” program is to keep a few more people around that otherwise might not stay. Every person that stays is a sliver of time more that the company can push off coming forward with a contract. The company knows what their break even point is on “bonus” payouts vs. new contract. What that is, I don’t know. We’ll have a better idea when they finally come to the table.