New Companies Focused on Equitable Pay As Their Product Diferentiation At Risk?

I bet a lot of business owners and manager will remain indignant at all the folks quitting their jobs and requesting higher pay, but surely some of them will give in as more and more people start to quit. As people start reconsider whether the trade off of their current wage is worth the services they provide and the scarce hours of their lives I'm sure there will be a higher demand for higher wages. I wonder how both sides will adapt.

If prices were to rise I'm thinking the company differentiation itself by paying its employees better while trying to be more sustainable, might lose out in this environment as people would probably consider purchasing their products or services since established companies are now paying their employees more. The only thing they could run on would be the family owned small business gimmick.

I have a friend who spent several days researching as they prep to officially dive into their new venture that would differentiate itself on equitable pay and treating employees with dignity. I was going to bring this point up to them but I wasn't sure if my thoughts on this are reasonable. Their goal was to provide a 'luxury' quality commodity that didn't price for exclusivity rather for necessity (lower margins risky).

When I say equitable pay I am referring to fair pay that is more in tune with the COL.

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Comments (6)

Jan 19, 2022 - 8:14am

Couple of things here:

1. Raising pay is not socialism. It's a market transaction at a new, higher price, something that happens all the time in private enterprise.

2. I think one reason you didn't get the engagement you wanted was because the message was unclear. The title doesn't tell me what you're wanting to say. The word "equitable" as it relates to pay generally refers to paying people equally (e.g. paying women in parity with men), not raising pay. There are a few times where I think you use "not" or "didn't" when it appears that the opposite would be true, which almost makes it seem that you got lost in your own thoughts as you were writing.

If you want more community engagement, we would be happy to pitch in if you put out a clearer re-write in a couple of days ("equitable" retains its dictionary definition, shorter sentences, etc.).

Jan 19, 2022 - 12:20pm

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