The Problem Of Zero Wage Increase Essay

970 Words Apr 10th, 2016 4 Pages
In this case, the store owner Mark got into a dilemma, on the one hand, all the employees in his company got frozen wages for two years, and based on the current situation, there is still a huge possibility that this “zero wage increase” phenomenon will continue to the third year. Mark is afraid that his employees will got mad and the company may experience a mass exodus or a mutiny. However, on the other hand, he did not have so much spare money to increase everyone’s wage. Based on his own observation, he thinks that some of them who did not work hard do not deserve a raise, while some of them who worked extremely hard and efficiently should get paid even more. But he also believed that if he only gives an increase to part of his employees, it will create some new problems. In this case, Aaron the controller came up with some ways like reducing inventory even further to “save money” so that they can raise the wages for their employees. However, both of them did not consider this idea as their first choice, because even if they can save enough money, there are still many places in the company where they could invest it in order to make the company look better.
To my understanding, by addressing wages, Mark not only wants to prevent the company from insurrection, but also plans to inspire his employees to contribute more to the company. In the other word, his goal is to maximize the productivity of individual employees by increasing their job satisfaction, and based on the…

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