Ikea is raising minimum wage a second time since the first was so successful
▻http://www.dailykos.com/story/2015/06/24/1396095/-Ikea-is-raising-minimum-wage-a-second-time-since-the-first-was-so-success
This was a surprise to conservative naysayers who assumed most Ikeas would have burned to the ground during the living wage apocalypse that happened last year after the announcement. Instead, Ikea claims that there are real benefits to trying to pay a living wage to the people that make you lots of money. It turns out that paying people better, treating employees better, makes things ... better. Ikea CFO Rob Olson was asked about the benefits:
“For one, less turnover. Although it’s only been six months since the raises went into effect, Olson said Ikea is on pace to reduce turnover by 5 percent or better this fiscal year. Holding onto employees longer means the company is spending less on recruiting and training new replacements.
Ikea is also attracting more qualified job seekers to work at its stores, according to Olson. Pay for retail sales workers in the U.S. is generally very low, with an average industry wage of just $12.38 per hour, according to the Bureau of Labor Statistics. But Ikea’s average store wage is heading north of $15. After its living wage announcement last year, the company opened two new locations — one in Merriam, Kansas, and another in Miami — and the higher wages (and attendant publicity) likely helped the company lure more candidates.”