Paying Prompts Productivity
We are researching a couple of local firms that have established a wage increase and determining if that increase has increased the respective firm’s productivity. I own one of the firms, while my father-in-law owns the other. We were looking for ways to increase productivity in this tumultuous economy, and at the same time, reduce turnover. The wage increase served as an incentive for our laborers to remain with the firms and this reduces our overhead costs of training new workers every time one of our current ones left. We have data from both firms that consists of sales logs and manufacturing information from the labor force of both firms prior to, and throughout the study.