November 3, 2015

WINNING THE WAR ON WAGES:

The Mystery of the Vanishing Pay Raise (STEVEN GREENHOUSE, OCT. 31, 2015, NY Times)

Outsourcing, offshoring and imports exert a steady downward tug on wages. Labor unions have lost considerable muscle. Many employers have embraced pay-for-performance policies that often mean nice bonuses for the few instead of across-the-board raises for the many.

Peter Cappelli, a professor at the Wharton School of Business, noted, for instance, that many retailers give managers bonuses based on whether they keep their labor budgets below a designated ceiling. "They're punished to the extent they go over those budgets," Professor Cappelli said. "If you're a local manager and you're thinking, 'Should we bump up wages,' it could really hit your bonus. Companies have done this in order to increase the incentive to hang tough on budgets, and it works."





Posted by at November 3, 2015 6:52 PM

  

« PLENTY MORE WHERE THOSE CUTS CAME FROM: | Main | THAT'S MORE LIKE IT: »