Businessweek Archives

Why managers should cheer the new minimum wage


Managers should cheer a $2.10 increase in the federal minimum raise??he first jump in almost a decade. It?? not just because the wage will help lift people from being among the working poor, to at least within striking distance of making ends meet. The real benefit is what it may do to those work places that rely on a constant flow of poorly paid workers.

First, it might force employers to hire fewer people but train them better, leading to greater overall productivity. Higher wages and investment are also likely to lead to happier employees, lower turnover and??ltimately??ower costs than getting labor on the cheap.

So I would brush off the fear-mongering of the National Restaurant Association, which predicts fewer jobs for entry workers because of the move. Smart employers will figure out a way to spread responsibilities and trim elsewhere to make sure that the most important assets they have??uman beings??mprove in value, rather the understandable instinct of underpaid workers to head for the door.


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus