McDonald’s just learned a lesson that Costco learned long ago and Walmart has yet to learn. Look at your business from a wholistic standpoint. Costco pays its workers at wages that far exceed industry standards. Their workers are generally happy, productive and loyal while the company makes a nice profit. Costco looks at the entire picture of their business entreprise, not just pure profit. Walmart, by contrast, tends to look at pure profit and their workers are among the lowest paid, such that many are on government assistance — which aids Walmart’s bottom line at taxpayer expense. In a sense, we are subsidizing Walmart workers.
This brings about the concept of a minimum wage, one where some states are raising rates and others, like Alabama, are passing laws that do NOT allow local government from raising their pay at the community level. Truthfully, no minimum wage law would be necessary if companies would do what McDonald’s just did. They looked at their business wholistically and saw rapid employee turnover. By raising their wages $1 an hour, soon to be $2, their retention rated increased and empolee satisfaction is higher — and that results in better customer interaction. This does appear as if it will hurt their bottom line, and in reality, may increase their profits.
A minimum wage should exist at a point where a worker is not in need of government assistance for working a full work week. Walmarts of the world that strategically set wages and employee hours so they must utilize government assistance in order to live are abusing the taxpayers while lining their own pockets with tremendous profits.