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Study: Employee Raises More Than Pay for Themselves

November 27, 2012

A new study from Demos, a liberal think tank, concludes that not only can the nation's largest retailers afford to pay workers substantially more, but that all will benefit greatly as a result. What do you think would be the effect on the retail industry and the economy if wages were raised for full-time workers?      [more...]


As someone who owns a retail supermarket, I give raises as a means of rewarding my employees, and unfortunately, the State of Ohio now forces a new minimum wage increase every year (thanks, unions). So the concept of raises for performance goes out the window as everyone gets a raise regardless of skill level, which spirals upward to all employees.

Who wouldn't want to pay their employees extremely well? The Apple store employees do not exist in poor rural towns, as they would starve, so for most of us in the real world, we have to adjust to the reality of trying to make a bottom line against the odds.

Obamacare is going to make this situation almost impossible to deal with, as many businesses will be forced to cough up most if not all their bottom line to health care, which will leave little for capital improvements. This is not whining, it is a fact that many small businesses are scratching their heads about the future. The mega retailers will survive by getting waivers and other perks to keep them profitable, but a small business owner does not have that option. My staff does a great job with servicing our customers, and I hope for the best. Competition is brutal, forcing us to give away our profits to stay in line with their big-box stores. All of us wish we had a business in a thriving community, which would lessen our need to squeeze more and more costs out of our business, but the reality is we must adjust or close down. I plan on being around till the last nickel in my account is still there, but there are other store owners who will not want to put up with the headaches; and IMHO, who can blame them?

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