Scott Shane, PhD, professor of economics, provides guidance on whether small businesses should follow Walmart, McDonald's and Aetna in raising the pay of their hourly workers.
Scott Shane, PhD, A. Malachi Mixon III Professor of Entrepreneurial Studies and professor of economics, provides his thoughts on whether small businesses should raise employees' hourly pay rates in Enrepreneur Magazine.
Shane says, "...forget thinking that giving workers a raise will get you some good public relations... Your decision to raise worker pay should be based on careful analysis of how it affects your company's bottom line."
It may seem counterintuitive, but "when companies pay more than the prevailing wage, their employees tend to work harder and are less likely to quit," Shane continues.
Read the full article, "Should You Raise Your Employees' Pay?" on Entrepreneur's website.
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