Quote:
Originally Posted by speakingtohe
Most companies only raise their base wages because of unionization, or to ward of unionization.
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Those and worker retention.
It costs money to train new employees and it takes (paid) time on the job for employees to become proficient at the job so data-driven companies (like Amazon) keep track of their turnover rate and factor it into their salary structure.
Nobody ever gets to 100% retention (and a certain amount of turnover is good for keeping the workforce from aging in lockstep) but for most well-run organizations there is an optimum point where labor costs and productivity balance out. At that point it is actually as unwise to underpay as it is to overpay.