More proof that what What Walmart really excels at is PR and spin.
After years of angry customer complaints about dirty stores, unstocked shelves, uncaring employees and an exodus of customers to the competition Walmart had an epiphany.
Maybe, just maybe, they had cut worker pay too far.
What if paying workers more, training them better and offering better opportunities for advancement can actually make a company more profitable, rather than less? “Efficiency wages” is the term that economists — who excel at giving complex names to obvious ideas — use for the notion that employers who pay workers more than the going rate will get more loyal, harder-working, more productive employees in return.
Ford astonished the world in 1914 by offering a $5 per day wage ($110 today), which more than doubled the rate of most of his workers. (…) The move proved extremely profitable; instead of constant turnover of employees, the best mechanics in Detroit flocked to Ford, bringing their human capital and expertise, raising productivity, and lowering training costs.
However, these days, money isn’t everything. People want more challenges, more ways to grow and better career opportunities.
“We realized quickly that wages are only one part of it, that what also matters are the schedules we give people, the hours that they work, the training we give them, the opportunities you provide them,” said Judith McKenna, who became chief operating officer in late 2014, in a recent interview. “What you’ve got to do is not just fix one part, but get all of these things moving together.”
“Quickly?” Considering the years of complaints, falling sales and stock price I’m not sure “quickly” is particularly accurate.
Just think. People who earn more money have more discretionary money to spend.
Rocket science? No, just logic.
But making your company look like a hero for paying people $18K a year definitely is rocket science.
Flickr image credit: mario