How Both the Company and Employee Benefit From Higher Pay

[mahatmakanejeeves]

Many businesses have had to increase pay during the pandemic. But there's an upside: Research shows companies that pay the best outperform their peers.

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BUSINESS | JOURNAL REPORTS: LEADERSHIP

How Both the Company and Employee Benefit From Higher Pay

Higher pay isn’t just a cost. The data shows that the employers that pay the best outperform their peers.

By Rick Wartzman and Kelly Tang
Oct. 28, 2021 10:00 am ET

As the economy has lurched forward during the pandemic, many businesses have found themselves forced to increase workers’ pay to fill openings—and not everyone is thrilled about it.

After the latest U.S. jobs report, which showed that wages in September rose a robust 4.6% compared with the prior year, Plante Moran Financial Advisors called the trend “a detriment to employers.” In fact, some are “hoping wages return to the pre-pandemic status quo,” noted a report from the Society for Human Resource Management.

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[MichMan]

1. Interesting approach

If a Costco, for example, paid its employees $35 per hour to start instead of $17, they would even be more successful.

I wish my employer was aware of this.... If they had only quadrupled my salary, I never would have retired.