What Home Depot's billion-dollar pay raise may help prove about workers
Publishing timestamp: 2023-04-30 11:10:47
Summary
Home Depot's decision to invest $1 billion in employee wages even as sales are slowing in a weakening consumer economy took some Wall Street analysts by surprise. However, more corporate leaders are betting that paying more will pay off in the midst of a still-tight labor market and persistent inflation. Home Depot executives project that it will actually boost the big-box retailer's industry-leading position. Other major retailers have also espoused the benefits of investing in a well-paid workforce. The concept that maintaining a well-compensated, enthusiastic workforce is good for business is at the heart of what labor economists refer to as efficiency wage theory.
Sentiment: NEUTRAL
Keywords: workplace culture, breaking news: business, business news, target corp, labor policy, retail industry, home depot inc, salary and benefits, walmart inc,