XECOWK2DQ2 - That employee may not stay with the company...

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If I were a business owner and had the option of choosing between a new employee or upgrading the computer systems, I would choose the computer systems. There are several reasons that I would make this decision. In making this decision I have to examine what the amount of investment is. In this case the amount of investment is the same so that is a non issue. Next I want to consider what the long term investment cost is. To upgrade the computer systems is an investment that will cost only one time. However, an employee is a continuing cost. After the original investment of hiring and training the employee, that employee will continue to be paid each week. Add to that the cost of potentially providing benefits such as health insurance and the price really begins to add up. The productivity is something to consider as well. Hiring and training an employee is costly especially if that employee is not effective or efficient at his or her job.
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Unformatted text preview: That employee may not stay with the company permanently. Therefore, investing in the employee is a risky choice. In contrast, a computer system is never going to up and quit. A new employee may also not jive well with current employees and reduce the productivity. If the computer systems are upgraded and the employees are properly trained to use it to its fullest, they could do their own work and the work that could be done by another new employee. New computer systems and operating systems that make employees jobs easier can really boost morale and help employees feel appreciated. It can make work much more efficient and quick which in turn could save a company money. Many companies replace older systems and employees with more effective processes. Computers facilitate these advancements. If a company is serious about competing with other businesses and being profitable it is important to keep up with the latest technology....
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