(January 31, 2014 at 8:17 pm)Chuck Wrote: On the low end of the pay scale, I think you overestimate how much impact better employees gained by paying above market rates would have on the success of the business. If there really was a overall positive impact that is worth the added cost, and not just in a few isolated cases, then you should see those employers enlightened enough to pay more gradually out competing more stingy employers, and wage rate would gradually increase. They have not, that says the savings from paying employees less on the whole benefits more than the higher quality of employees that might come from paying employees more.
In fact, often times customers arbitrage off of higher paying employers by pumping the better employees of higher paying employers for superior service and information, but paying the lower paying employers for the actual goods. So paying employees more for higher employee quality can end up as a double whammy for the supposedly more enlightened employer.
I'm curious to know if there are any actual data about this. I'm honestly intrigued.
