Companies paying above the federal minimum wage find reward in happier teams, better reputations & stronger bottom-line, study finds
Author: Irit Tamir, Conscious Company Media, Published on: 24 October 2017
"Why Living Wages Should Matter to Your Business," 19 October 2017
It seems like a winning formula: When workers are paid adequate wages, they’re able to sustain their families, and even to thrive. [E]mployers [also] enjoy myriad benefits when they pay adequate wages: healthier workers, reduced turnover, higher productivity, stronger loyalty, and fewer disciplinary problems, to name a few...
[That is why] [e]mployers across a variety of industries have decided that paying the lowest possible wages ends up being counter-productive... [T[here’s a positive ROI [Return on Investment] for paying more than the legal minimum.
The Peterson Institute for International Economics conducted an extensive review of literature spanning over 30 years and many companies. It concluded that higher wages:
- motivate employees to work harder
- attract more capable workers
- lead to lower turnover (reducing need to hire and train new workers)
- improve performance
- reduce absenteeism and disciplinary problems
- reduce need to monitor employees
The Peterson Institute also determined that higher wages may lead to better employee health, greater productivity, greater job satisfaction, and enhanced reputation with customers... [refers to Aetna & Tyson Foods]