A Fine Line With Paydays

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Companies say it all the time. They tell customers, "Due to the rising costs to produce the products we make and sell, we have no choice but to raise prices." It's a true statement that makes sense. A company must remain afloat, and if the company cannot make a profit it cannot stay in business. At the same time, this is not often thought of the same way when it comes to the rising costs incurred by the employee. It costs more to drive to work. It costs more to wash your clothes, keep the lights on, and buy groceries and other household items. The employee does not, unfortunately get to use the same argument when it comes to their bosses. "Due to the higher cost of living I am left no choice but to ask for a raise in my compensation for the work I do for you." You will get laughed out of the office. But it is a fine line of course. Because the cost of the labor is as much a part of the cost of doing business as much as any other cost the business incurs. And so, offering pay raises to employees may only serve to exacerbate the problem. Still, I think that at least some consideration should be made in this regard when it COMES to the employees. We are ALL incurring higher costs to conduct our day to day operations. Especially when the employees know that prices are being raised on the things they produce, but see their paychecks remain the same, or find themselves at the butt end of the cost reductions—this actually serves to make employees LESS productive, further hurting the objectives of the business. So, employers need to be aware of this and I think when inflation is hurting everyone, there has to be at least some thought to making the time offered by their employees more valuable for everyone. If it serves no other purpose than to make the employees FEEL like the employer cares about their needs, then I think it gets the goal accomplished. A little bit goes a long way to send a message. If the company has the ability to raise prices in higher cost environments, the employee providing services to the company should have the same option and benefit of doing so as well. If companies DO NOT recognize this, I think they do it at their own peril, not realizing the underlying cost added to their bottom line when employees slow down to make up the difference. In a sense, the employee basically says, "Your $15 worth of pay is now only worth $13 worth of work. So, you will get $13 worth of work."