The income gap between the highest earning worker and the lowest earning worker can be a dramatic difference. This is seen in business’ all across the world and especially in large business’ such as the firms that are listed under the Forbes 500. However, the article explained that Mr Lee, who is the owner of Lee Valley tools does not agree with the huge chasm between the top paid employee and the lowest paid employee. Mr Lee asserts that the top paid worker within his company will never make 10 times more than what the lowest paid worker will earn.

Mr Lee’s company has demonstrated that it is important to make the workers feel secure and part of the company by reducing the income gap between them. Mr Lee’s method of operation will potentially provide more incentive for workers that are receiving a lower pay to still have incentive to work harder and increase their productivity. Statistics in the article has shown that a CEO working in a firm in the US will make 354 times more money than the lowest paid employee in the same firm. This is an astonishing number and it also highlights the severe income gap we can see from these statistics.

I believe that Mr Lee’s business conducts will not only benefit the workers by making them feel like they play a important role in the company, but it is also beneficial to the company as a whole. It will prevent problems such as diseconomies of scale, where workers feel alienated and they feel like they are redundant as they perform the same task everyday and receive a relatively low pay for it.

Citations:

http://www.theglobeandmail.com/news/national/time-to-lead/how-one-company-levels-the-pay-slope-of-executives-and-workers/article15472738/