In the wake of a struggling economy, many big retail stores are still clinging to their old pay decreases, refusing to pay higher wages. However, what many of these companies are not considering is how an unwillingness to provide adequate compensation may actually be hurting their business on a grand scale.
In a time when information is readily available and passed among the people, there are very few unethical or unfavorable business practices that go unnoticed. People these days want to know what kind of businesses they are supporting, and many will refuse to shop at a store with questionable morals. If a company is making billions of dollars in revenue, and then refusing to pay their workers a sustainable wage, the public is going to take notice.
There has been a growing focus on supporting local businesses. While it is clear that local businesses are hardly putting a dent in big retail sales, continuing to withhold earnings from employees will likely drive concerned citizens towards companies that pay higher wages. They say that all publicity is good publicity, however it is doubtful that the CEOs of major retail businesses are excited when they see protesting employees on the news.
Customer service plays a huge role in whether a consumer wants to shop at a store or not. If someone feels like they are being disrespected at a store, they are not likely to return. On a larger scale, if a retailer's staff is not earning higher wages, or at least something better than minimum wage, they are not going to perform their duties as expected. It may be subtle, but resenting a company for refusing to provide higher wages is only going to cause poor customer service and a memorably negative experience for customers. Happy employees mean happy customers, and higher wages are the key to that balance.
Providing employees with a pay increase is also a win-win move for big retailers, as a significant amount of that money is likely to go right back into their cash registers. Putting money into the pockets of employees will see a corresponding growth in sales. Most big retail employees are struggling to pay for basic necessities, ignoring the store's internal economy that is quickly losing its potential.
The bottom line is that everyone comes out on top when big retail stores provide ample pay. The public takes notice and respects companies that choose to offer higher wages. The pay increase boosts the morale of the employees, which in turn generates better customer service. Better customer service creates more revenue, which makes it possible for the retailer to provide more income. This money cycles through the employees, back into the retailer's net worth.
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