The Big Trade off: Profit and Employee Satisfaction

Lots of companies often face the issue of whether to earn and keep that extra amount of profit, or rather invest it back into the workers. Unfortunately it is often seen as a trade off as one can only come at the expense of the other. In the case of retail giant Wal-mart, they are notorious for low wages and poor employee treatment. This results in poor customer service given by those employees.

Even in the case of Target, they promote the idea that they offer the same prices with better quality and better employee treatment when in fact the statistics will show that their employee standard are much similar to Wal-marts, going as far as requiring employees to watch anti-union propaganda.

In reality this idea of a trade-off or sacrifice is untrue. Costco and Trader Joe’s, for example, offer their employees a “livable” wages, and yet, they experience far higher sales per employees than Walmart, or Target. This draws to the conclusion that rather than being a trade-off, profit, and employee satisfaction can be seen as compliments. When one goes up, the other will mostly have gone up as well.

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