Employers would be wise to pay workers living wage
Recent announcements by Walmart and others of plans to raise workers’ hourly pay to $9 or $10 per hour calls to mind a couple of things:
First, it reminds us of how, in 1914, Henry Ford raised his workers’ wages to $5 for an eight-hour day, a move that many business people argued would be financial suicide. And second, that labor supporters now are advocating for a minimum wage of $15 per hour, a move that many business people argue would be financial suicide.
These two things resonated with me because I discovered that if you take the $5 per day that Ford paid his employees and adjust it to account for inflation, it equates to $14.80 per hour today. Coincidence? Perhaps not.
Ford was proven right to have done what he did more than 100 years ago, and any employer today who wishes to increase productivity while reducing staff turnover and training costs might be wise to follow his example and pay workers a decent, living wage.