For An Annual Commitment Of Just $5 - Become An Individual Subscriber/Supporter Of WNYLaborToday.com
Subscriber Log In
Buffalo AFL-CIO Central Labor Council Denise Abbott,
President
Click Here for
Buffalo CLC Web Site
Niagara-Orleans AFL-CIO Central Labor Council Jim Briggs,
President
Click Here for
Niagara-Orleans CLC Web Site
Karen Butinski,
President
Click Here for Web Site
:"" Don Williams, Jr.,
President
Click Here for Web Site
Ryan Sweeney,
President
Click Here for Web Site

Recent News

More news >>

Via businessinsider.com: The Economic Case For Paying Cashiers $40,000 A Year

Published Monday, March 25, 2013 10:00 am
by www.businessinsider.com

The Average American Cashier makes $20,230 a year, which in a Single-Earner Household would leave a Family of Four living under the Poverty Line.

But if he works the Cash Registers at QuikTrip, it’s an entirely different story.

The Convenience Store and Gas Station Chain offers Entry-Level Employees an Annual Salary of around $40,000, plus Benefits.

Those High Wages didn’t stop QuikTrip from Prospering in a Hostile Economic Climate. While other Low-Cost Retailers spent the Recession Laying off Staff and Shuttering Stores, QuikTrip expanded to its current 645 Locations across 11 States.

Many Employers believe that one of the best ways to Raise their Profit Margin is to cut Labor Costs.  But Companies like QuikTrip, the Grocery Store Chain Trader Joe’s, and Costco Wholesale, are proving that the Decision to Offer Low Wages is a choice, Not An Economic Necessity.  All three are Low-Cost Retailers, a Sector that is traditionally known for relying on Part-Time, Low-Paid Employees.  Yet these Companies have all found that the act of Valuing Workers can pay off in the form of Increased Sales and Productivity.

“Retailers start with this Philosophy of seeing Employees as a ‘cost to be minimized,’” says Zaynep Ton of MIT’s Sloan School of Management.  That can lead Companies into a vicious cycle.  Under-investment in Workers can result in Operational Problems in Stores, which Decrease Sales.  And. Low Sales often lead Companies to Slash Labor Costs even further. Middle-Income Jobs have declined recently as a share of Total Employment, as many Employers have turned Full-Time Jobs into Part-Time Positions with No Benefits and Unpredictable Schedules. 

QuikTrip, Trader Joe’s and Costco operate on a Different Model, says Ton.  "They start with the ‘Mentality’ of seeing Employees as ‘Assets’ to be maximized," she says.  As a result, their Stores boast Better Operational Efficiency and Customer Service, and those result in Better Sales.

QuikTrip Sales Per Labor-Hour are Two-Thirds Higher than the Average Convenience Store Chain, Ton found, and Sales Per-Square-Foot are over 50% higher. 

Entry-Level Hires at QuikTrip are trained for two full weeks before they start work, and they learn everything from How to Order Merchandise to How to Clean the Bathroom.

Most Store Managers are promoted from within, giving Employees a reason to work hard.

"They can see that if you work hard, if you're smart, the Opportunity to Grow within the Company is very, very good," says Company Spokesman Mike Thornbrugh.

The decision to offer low wages is a choice, not an Economic Necessity.

The approach seems like Common Sense.

Keeping shelves stocked and helping Customers find Merchandise are Key to Maximizing Sales, and it takes Human Judgment and People Skills to execute those tasks effectively.  

To see what happens when Workers are devalued, look no further than Borders or Circuit City. Both Big-Box Retailers saw Sales plummet after Staff Cutbacks, and both ultimately went Bankrupt.

You can read the rest of this story at: http://www.businessinsider.com/companies-paying-cashiers-40000year-2013-3

Comments

Leave a Comment