Op-Ed By Scott Nash
Washington Post, April 20, 2014
One of the companies I admire most is Costco. ... Back in 2008 when the economy was in a downward spiral, founder and chief executive Jim Sinegal said that instead of looking for ways to cut costs and reduce compensation like most companies were doing, it was especially important to find ways of supporting the staff in this time of hardship. ...
Costco’s average pay rate is $21 per hour, while BJ’s average is $11 and Sam’s Club’s $12. However, Costco is the performance leader in the club membership retail sector.
Here at Mom’s, we’ve never paid minimum wage. In June of 2011, Mom’s raised our minimum wage to $10 per hour from $9. This month, we will raise it to $11 per hour.
This is not an act of charity, but rather an investment. Our most valuable asset here at Mom’s is our people. Paying them more is smart business. Any good businessman knows there is no higher return on investment than investing in people. Great people are more efficient, have good ideas and have good judgment. Customers love shopping at places with good employees. ...
Similar to a child who struggles in school because he has a tough home life, I believe that when people are stressed in their personal lives, it negatively impacts their work performance. Raising the minimum wage will improve worker performance unilaterally, as basic needs are met.
The existing minimum wage leads to corporate welfare. Large retailers such as Wal-Mart and McDonald’s pay minimum wage. Many of their employees, even though they’re working full time, are on government assistance programs. Basically, the entitlement programs that people complain so much about subsidize the low-paid employees of large corporations. ...
When money lands in the hands of minimum-wage earners, consumption immediately increases. ...
Scott Nash is the founder of Mom’s Organic Market. This piece is adapted from one that originally ran on his Scott’s Compost Pile blog.