Walmart Is An Efficient Wage

Experts call it an “efficient” wage. It is the wage workers need to earn if they are to help the company reach its goals. The usual idea is to pay workers as little as possible. If you can find someone to take a job for $7 an hour, why pay $8? Well, one reason might be that you want the worker to do a good job and not just show up. That is the challenge faced by even well-meaning companies. If you pay a worker more than you have to, your costs go up. Profits might go down. People who have invested in your company are stockholders. For the most part, they only care about the returns they get on their investments. They call that ‘shareholder value.’ Take Walmart, it is a good example. There were reports that customers were not happy with