Dive Summary:
- An undervaluing of workers by retail chain stores has sparked a wide range of operational issues in regards to lack of staffing, and how companies value workers.
- Zeynep Ton of MIT says undervaluing staff may lead retailers into a viscous cycle of customer dissatisfaction.
- A presumed trade-off of low prices to consumers through lower wages to employees ‘can be broken’ according a Harvard Business Review article and lists the most successful retailers utilizing the strategy.
From the article:
“She cites as examples four companies--all highly profitable and all having high customer satisfaction ratings--who treat their employees royally: Costco, Trader Joe's, Quiktrip and the Spanish supermarket chain Mercadona"...
