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Management 13th Edition by John Schermerhorn,Daniel Bachrach
Edition 13ISBN: 978-1118841518Management 13th Edition by John Schermerhorn,Daniel Bachrach
Edition 13ISBN: 978-1118841518 Exercise 4
THINK BEFORE YOU ACT
"Our decision to invest in front-line employees will directly support our business, and is one that we expect to deliver a return many times over."
To Pay or Not to Pay More Than Minimum Wage
M ore and more Americans are finding themselves in hourly paid jobs, and many-perhaps most-don't pay very well. The U.S. minimum wage is set by the Fair Labor Standards Act, and the rate since 2009 has been $7.25 per hour for non-tipped employees. Some states set higher minimums, with the highest being $9.32 per hour in Washington. While Congress debates raising the federal minimum wage to $10.10, the city of Seattle has already raised its to $15.
It's tempting for employers to view wages strictly as costs of production and to try and minimize these costs. The less you can pay for labor, the argument goes, the higher the "bottom line." But that's not necessarily true, or just. When Gap raised its minimum to $9.00 and pledged to go up to $10.00 in 2015, CEO Glenn K. Murphy said: "Our decision to invest in front-line employees will directly support our business, and is one that we expect to deliver a return many times over." At Whole Foods Markets, co-CEO Walter Robb believes that paying more than the minimum and competitors builds a stronger and more committed workforce. He believes in "conscious capitalism" where business operates as a balancing act between owner/shareholders, customers, and employees as key stakeholders. One way of achieving balance is paying employees more than either the law or market conditions would necessarily require.
YOUR TAKE
How about it Should employers wait for federal or state governments to raise the minimum wage, or should they act on their own to pay more than the required minimum no matter what it may be Are Gap and Whole Foods onto something that more employers might learn-pay better and get more loyalty and higher performance Or, are these firms just interesting specialty cases that make good news but probably wouldn't apply in most other settings
"Our decision to invest in front-line employees will directly support our business, and is one that we expect to deliver a return many times over."
To Pay or Not to Pay More Than Minimum Wage
M ore and more Americans are finding themselves in hourly paid jobs, and many-perhaps most-don't pay very well. The U.S. minimum wage is set by the Fair Labor Standards Act, and the rate since 2009 has been $7.25 per hour for non-tipped employees. Some states set higher minimums, with the highest being $9.32 per hour in Washington. While Congress debates raising the federal minimum wage to $10.10, the city of Seattle has already raised its to $15.
It's tempting for employers to view wages strictly as costs of production and to try and minimize these costs. The less you can pay for labor, the argument goes, the higher the "bottom line." But that's not necessarily true, or just. When Gap raised its minimum to $9.00 and pledged to go up to $10.00 in 2015, CEO Glenn K. Murphy said: "Our decision to invest in front-line employees will directly support our business, and is one that we expect to deliver a return many times over." At Whole Foods Markets, co-CEO Walter Robb believes that paying more than the minimum and competitors builds a stronger and more committed workforce. He believes in "conscious capitalism" where business operates as a balancing act between owner/shareholders, customers, and employees as key stakeholders. One way of achieving balance is paying employees more than either the law or market conditions would necessarily require.
YOUR TAKE
How about it Should employers wait for federal or state governments to raise the minimum wage, or should they act on their own to pay more than the required minimum no matter what it may be Are Gap and Whole Foods onto something that more employers might learn-pay better and get more loyalty and higher performance Or, are these firms just interesting specialty cases that make good news but probably wouldn't apply in most other settings
Explanation
Verified
Verified
In the present case there are certain co...
Management 13th Edition by John Schermerhorn,Daniel Bachrach
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