A friend sent me an article from HR Magazine, which is produced by the Society for Human Resource Management (SHRM). The author, Jennifer Schramm, cites studies that consider the impact of pay inequality on worker moral. Where job security was recently the leading driver of job satisfaction, it is now compensation. Schramm notes that CEO-worker compensation has shifted from 20-1 in 1965 to 265-1 in 2013. What are companies doing to address this problem? 42% are offering “financial literacy training” and 25% are offering budget training.
These measures would be great if workers who are often living from paycheck to paycheck had anything to save or budget. America needs a raise. It’s not just an issue of low wage workers. Middle class and even some executives have been receiving small/no raises for the last decade. The drum beats for changing are getting louder.