Raising Hourly Wages Can Save You Money in the Long Run

Paying less can lead to more turnover and low productivity. See the correlation between wages and retention below. 

Tools

Select the average hourly wage you pay—or want to pay—your employees. Then, you’ll see your projected monthly turnover percentage for that wage.

Cost of Minimum Wage Calculator

Bottom line: increase pay, increase retention

When you factor in lost productivity, OSHA costs, the costs of recruiting and training new hires, and more, paying minimum wage (or too close to it) can actually be pretty costly!

And, while there’s no one-size-fits-all answer for exactly what to pay your people, our data shows a direct correlation between pay and retention. And higher retention translates to greater productivity, a better culture and a safer workplace. Win. Win. Win.

To learn more about how paying more can save you more, contact us today.

Contact us today

Pay: by the numbers

Here’s further proof that pay is an important factor to employees who are deciding to take a job or stay at your company.

95%

Employees said pay was important or very important to job satisfaction

65%

Employees who are satisfied with their overall compensation/pay

21 states

Raising minimum wage in 2017

Salary #1

Most important job factor for manufacturing workers

Wages vs. workplace productivity

While our data showed a connection between wages and turnover, research also shows a relationship between wages and productivity. Actually, it shows more of a gap—a pretty wide one.

According to the Economic Policy Institute, worker productivity has grown a lot in the last 40+ years—thanks to advances in technology and process efficiencies. But wages have not seen nearly the same rate of growth.

+73.4%

Workplace productivity increase, 1973-2015

+11.1%

Worker hourly pay increase, 1973-2015 (adjusted for inflation)

While this gap has benefited—and continues to benefit—American companies, it isn’t sustainable. Especially when trying to retain your most productive employees. Research has shown that an employee who feels they are working harder than others is more likely to leave, leaving you with the less productive people.

Can you put a price on turnover? We did. Check out our Cost of Turnover calculator.

Can we increase wages, retention and workplace productivity?

Forward-thinking and best-in-class business are investing more in their employees–not only through wage increases that help employees boost their living standards, but also through programs that help them learn new and more relevant skills.

Companies who commit to job-based learning programs will see greater gains in retention, productivity and competitiveness. And, by building a more skilled workforce, they help employees grow their earning potential and create a cycle of workplace productivity and wage increases that benefits society as a whole.

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