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Raising Wages to Reduce Turnover, Boost Applicant Flow, and Make Lives Better
January 9, 2023 4:02:31 PM

There’s been a lot of discussion in the past few years about raising the minimum wage. Some argue that it would be good for businesses, while others contend that it would be too costly. But what if we looked at the evidence? What does it tell us about the effects of raising wages on businesses and employees?

High Turnover Rates in Manufacturing

High turnover rates in manufacturing jobs create an unsustainable cycle of having to hire and train new employees constantly. This problem is costing employers money and reducing productivity, ultimately leading to a dragged-out process that affects the success of the company.

Priorities of the Workforce are Changing

As the workforce’s priorities shift towards improved benefits, such as improved work-life balance, competitive salaries, and improved growth opportunities. While many employers continue to offer competitive salary packages and improved benefits that attract top talent in their respective fields, additional attention is being given to improved health benefits, improved retirement options, and increased flexibility for remote working, which can greatly improve employee morale and encourage productivity.

By focusing on these improved benefits that make it easier for workers to balance their personal lives with their career ambitions, employers have an opportunity to demonstrate a commitment to employee satisfaction that rewards effort and ensures long-term success.

Raising Wages and Improved Benefits are Key to Retaining and Attracting Applicants

Attracting and retaining quality talent should be a top priority for any business. Raising wages and improving benefits are key to making sure you attract the right applicants, retain them, and have happy employees that help take your business to the next level. After all, employee satisfaction is directly related to customer satisfaction and loyalty, so it makes sense that investing in these areas can yield positive results for a company’s bottom line.

Moreover, offering competitive wages not only ensures that an employer attracts the best people for the job but also makes potential candidates view the business positively, as it reflects how much they value their employees’ work. Making sure people feel secure and appreciated in their jobs also helps ensure long-term loyalty, which yields greater productivity through increased morale and a better overall working environment.

Raising wages is a win-win for both employees and the businesses that employ them. Our case study shows that increasing pay can lead to improved worker morale, fewer employee turnovers, and, ultimately, greater productivity. Employees who earn more tend to work harder, stay in their positions longer, and respond positively to management decisions. This can translate into cost savings due to higher labor efficiency as well as increased customer satisfaction from workers who are more committed to their job. Companies may even find that raising wages leads to higher profits in the long run.

All of this points to one conclusion: it is in everyone’s best interest for businesses to pay their employees a living wage.

Download Raising Wages to Reduce Turnover, Boost Applicant Flow, and Make Lives Better below!