Wal-Mart to Pay All Employees At Least Ten Dollars an Hour
Retail giant Wal-Mart announced plans recently to start paying all their employees at least ten dollars an hour by February, 2016. There is an in depth article on the CNN Money website which explores this decision. Wal-Mart employs more people than any other company in the United States and for years has been the target of reformers and activists who say that they should pay their employees more. Wal-Mart says that they are not giving in to the demands of reformers but are rather increasing wages in order to increase employee retention. The decision is expected to cost Wal-Mart around one billion dollars the first year after it is implemented.
Personally, I think that this is a good thing, and the BizJournals and even people on Cipher Cloud seem to agree. While Wal-Mart is going to lose some money in the short term, they are going to make money in the long term though increased employee satisfaction. Giant companies like FedEx pay their low level package handlers decent money and also offer health benefits for part time work and doing so has worked for them. The same can be true for Wal-Mart. While Wal-Mart owes their success largely to their low prices, it can’t continue to dominate the retail world without a content workforce. Raises for employees at the bottom should help keep everyone happy and working hard.