Thursday, July 16, 2015
Over the last few years (especially in the Seattle area) the discussion on minimum wages has been rather heated. I've always argued that Wal-Mart holds the answers to this debate. Wal-Mart has observed the impact of different minimum wages and changes to minimum wages across a range of states. Recently, the company has endorsed increasing the minimum wage and is paying workers slightly higher wages. Why? Well one of the arguments in favor of increasing the minimum wage is a reduction in worker turnover. If you pay workers a wage above what they could get someplace else, they are going to work harder, knowing they can easily be replaced. Wal-Mart won't release their numbers but it looks like paying workers a higher wages could actually be saving the company some money. Is it enough to offset the wage increase? Hard to say.