(Photo by Joe Raedle/Getty Images)
Walmart and CVS have been generous to their employees lately, raising the minimum wage they pay them ahead of government mandates -- and adding cash bonuses, and parental leave.
And they aren’t alone. Target and other major retailers have been generous to their employees in similar ways, too.
To some this may come as a big surprise. Big retailers are hardly known for generosity to their employees beyond the legal minimum wage.
But there’s an official explanation for it: the recent corporate tax cut. Lower tax rates leave American companies with larger after-tax profits, which in the name of fairness and good publicity, they are willing to share with employees.
| Company | Revenue | Operating Margin | Gross Profit |
| Walmart | $495.01B | 4.51% | $124.62B |
| CVS | $182.35B | 5.40 | $28.66B |
Source: Finance.yahoo.com 2/10/18
Then there’s an unofficial explanation: a tightening labor market that has raised the level of competition among employers for a smaller pool of workers looking for jobs.
After several years of economic growth, US unemployment has dropped below 4.5%, a rate that is historically consistent with a labor market operating beyond “full employment.”
That places an upward pressure on wages as employers try to lure workers away from their competitors.
That’s certainly good news for people who are paid the minimum wage. The trouble is that the good news may not last for too long, as retailers have been working on alternative ways to cope with the tightening labor market.
">(Photo by Joe Raedle/Getty Images)
Walmart and CVS have been generous to their employees lately, raising the minimum wage they pay them ahead of government mandates -- and adding cash bonuses, and parental leave.
And they aren’t alone. Target and other major retailers have been generous to their employees in similar ways, too.
To some this may come as a big surprise. Big retailers are hardly known for generosity to their employees beyond the legal minimum wage.
But there’s an official explanation for it: the recent corporate tax cut. Lower tax rates leave American companies with larger after-tax profits, which in the name of fairness and good publicity, they are willing to share with employees.
| Company | Revenue | Operating Margin | Gross Profit |
| Walmart | $495.01B | 4.51% | $124.62B |
| CVS | $182.35B | 5.40 | $28.66B |
Source: Finance.yahoo.com 2/10/18
Then there’s an unofficial explanation: a tightening labor market that has raised the level of competition among employers for a smaller pool of workers looking for jobs.
After several years of economic growth, US unemployment has dropped below 4.5%, a rate that is historically consistent with a labor market operating beyond “full employment.”
That places an upward pressure on wages as employers try to lure workers away from their competitors.
That’s certainly good news for people who are paid the minimum wage. The trouble is that the good news may not last for too long, as retailers have been working on alternative ways to cope with the tightening labor market.
Read Again https://www.forbes.com/sites/panosmourdoukoutas/2018/02/11/the-real-reason-walmart-and-cvs-are-rushing-to-raise-minimum-wage/Bagikan Berita Ini
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