Quote:
Originally Posted by Minte
In theory giving the Walmart employees an extra bump will make them happy...for about 3 weeks. Raises and bonuses don't have much of a long term effect. People that are prone to living week to week quickly find something new to waste that raise on and in a very short time it's business as usual. Push it to far, the company has no alternative but to raise prices.
Don't forget about those shareholders. That's the key part of this situation. 401k's are built on dividends. Growth in every facet of the economy depends of keeping those shareholders enthusiastic.
My own opinion is Walmart and McDonalds should raise their prices. However, if they do that a lot of customers will be unhappy. McDonalds isn't like Exxon. People don't require cheeseburgers and fries. And look at how much we all love Exxon & BP..
edit:check your math on that 20%. If Walmart eliminated all of the owners bonuses it wouldn't add up to anywhere near a 20% pay increase for the employee base. The only way for that to happen is to raise consumer prices.
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I will agree, that a raise most likely will not increase a employees productivity long term nor will it result in long term happiness to someone with bad spending habits. Yet as you should know, a raise is not really about either of those. The reality is raises are useful in terms of keeping people with the same company long term. Having long term employees that understand the job is what increases your productivity.