Some fast-food restaurants are taking it upon themselves to raise the minimum wage by starting their employees at $9.50, $10.50, or even $15 an hour!
A few weeks ago, I told you about CVS the big drugstore chain. They're reportedly redlining employees who have been on the job for too long by imposing pay caps on them. So no matter how good an employee is, no matter how positive their employee reviews are, they can't earn any more after a certain cap.
This from a company who has a CEO with a salary in excess of $20 million, according to The Los Angeles Times! But when a rank-and-file employee starts making too much, they allegedly cap them to get them to leave. By getting that churn, the company can get a lower-compensated employee in to do their job.
But not everybody plays that game. There's also Costco Wholesale, the warehouse club that practices enlightened self-interest by paying their employees a decent salary. They've made the voluntary choice of raising the mininum wage for their workers.
The fruit of Costco's philosophy? Less turnover, a sense of hustle among their employees, and a great attitude. Not with every employee, of course, but with the great many of them!
It's not just Costco, though -- these businesses are also raising the minimum wage for employees
Now a number of companies are copying the Costco model of higher wages. In-N-Out Burger has a starting minimum wage of $10.50. Shake Shack starts people at $9.50 an hour. And a Michigan restaurant called Moo Cluck Moo with 2 locations in the state starts employees at a minimum of $15 an hour, according to The New York Times.
The idea is so simple; By offering something more than the minimum wage, employers get employees who are more loyal, better trained, and are more likely to stay with them for the long haul. It's the thing I've long talked about—the idea of romancing your employees so they romance your customers.
Of course, some businesses choose to go the other way and have enormous turnover. And we've all been to those places where it seems like you never see the same face twice. Just look around the store and you'll know immediately; it's disheveled and dirty. Then look at the bathrooms. If they're dirty, that says a lot about how they treat their employees!