retention

Posted: March 6, 2015
By: Clay Cerny

 

The job numbers from last month are exciting. The unemployment rate is down to 5.5%, which is good in itself. However, there is even better news. Bloomberg reports that leading retailers are struggling to keep their lowest paid employees. It will take a while for employers to move the needle up on salary, but this is a good start. Bloomberg depicts the current situation as a conflict of interests between investors and employees. I disagree. As lower paid workers make more money, they will spend, which means everybody wins. The article also demonstrates how much it costs a company to replace employees. The raises leading retail companies have given to their employees can be seen as a way to save costs related to turnover. The news is good. Let’s be happy for a little while.