The case for good jobs — and why they're good for business too | Zeynep Ton
Oct 7, 2024
auto_awesome
Zeynep Ton, a professor at MIT Sloan and co-founder of the Good Jobs Institute, champions the transformative power of fair wages for essential workers. She argues that categorizing every job as a 'good job' enhances employee satisfaction and productivity. Highlighting examples like Costco, Ton illustrates how investing in employee well-being leads to sustainable business success. Moreover, she calls for a shift in focus from just recruiting new talent to nurturing existing staff, promoting growth through fair compensation and meaningful training.
Investing in existing employees, rather than solely on recruitment, enhances productivity and reduces turnover rates for businesses like Costco and Sam's Club.
Creating good jobs requires a supportive work environment alongside fair pay, ultimately benefiting both employees and company performance in the long run.
Deep dives
The Importance of Good Jobs
Many essential workers, despite their critical roles, face challenges such as low wages and poor working conditions, often leading to a cycle of poverty and lack of dignity. For instance, a full-time hourly manager named Janet struggles to provide for her family due to her unpredictable work schedule and insufficient income, which often forces her to juggle multiple jobs. This situation exemplifies a systemic issue that affects not only workers like Janet but also the businesses themselves, as understaffing leads to longer wait times for customers and ultimately reduced sales. Good jobs are not merely about higher pay; they also require a supportive work environment that values employees and encourages productivity.
Successful Business Models
Companies like Costco and Mercadona demonstrate that investing in employees can lead to better business outcomes, including lower turnover rates and increased employee satisfaction. Costco's proactive approach to paying higher wages and investing in staff training results in employee turnover as low as 8%, significantly lower than the retail average. Similarly, Sam's Club underwent a transformation under CEO John Furner, who raised pay and improved work conditions, resulting in greater productivity and customer satisfaction. These examples show that creating good jobs is not only beneficial for employees but also a strategic advantage for companies aiming to enhance their competitive edge.
The System Behind Good Jobs
A sustainable model for transforming jobs involves a dual focus on compensation and a supportive work system that motivates employees. This includes elements such as simplification of tasks, cross-training, and ensuring adequate staffing levels to prevent burnout and inefficiency. By prioritizing these areas, employers can create environments where employees take pride in their work, leading to enhanced customer service and overall company performance. Ultimately, establishing a good job system not only benefits individual workers but contributes to a healthier economy and a more engaged workforce.
Many of the jobs that keep the world running — like cleaning bathrooms, picking up trash, caring for the elderly — pay so poorly that workers can barely make ends meet. Nonprofit leader Zeynep Ton is intent on changing that, showing why everyone wins when companies pay their people livable wages and offer opportunities for growth. After the talk, Modupe digs into why money shouldn’t be spent solely on recruiting, training and hiring new talent — but also investing in existing employees.