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Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Jan. 8, 2006 / 18 Teves, 5767

Decent Working Conditions, Final: Motivation

By Rabbi Dr. Asher Meir


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Sometimes raising pay is cutting costs


http://www.JewishWorldReview.com | Q: My workers get a low wage and have trouble making ends meet, but they don't really have other options. Do I have to pay them a "living wage"?


A: This week's column focuses on self-interest: better conditions mean better work.


The fact is that buying labor is not the same as buying an item from a store shelf. The "product" that you get from a worker is not a standard and uniform one, dependent only on the work agreement; it is a highly variable one, depending also on the worker's ability, attitude, motivation, and so on. Higher wages impact all of these.


In economics, the "efficiency wage" theory suggests that employers do, and should, pay higher wages than what is needed to fill job openings. The Wikipedia article on efficiency wages give a number of reasons:


Avoid shirking: when workers make more than they could elsewhere, they will work harder because if they get fired for poor performance they will suffer a loss of wages.


Avoid turnover: when workers make more than they could earn elsewhere, they are less likely to quit; this means that the employer invests less in hiring and training new workers.


Attracting quality workers: When wages are higher, the job will draw applicants of higher ability.


Attitude: paying a higher wage creates a feeling of gratitude and solidarity which then gives the worker higher motivation.


Henry Ford, who introduced the five-dollar day in his factories when the going wage was far less, called this step "one of the finest cost-cutting moves we ever made". A side benefit was that demand was also increased, as large numbers of workers could afford Ford cars due to their improved income.


Jewish law provides a fascinating precedent for this idea. The Torah tells us that a person who harms someone else must pay for their medical bills -- "he shall pay for his idleness and will surely cure him." (Exodus 21:19) In practice, that means that a doctor is hired and the damager pays the bill.


But who decides what the bill is? The Talmud discusses a case where the damager/payer doesn't want to pay for the doctor chosen by the patient; he offers instead to provide his own physician who will heal free. The Talmud rules that this offer may be refused, because "healing which costs nothing is worth nothing". When a person doesn't get paid, he doesn't have a sense of responsibility, and is not motivated to do the best job he can. Many commentators add that the same is true if the patient is offered a physician who works for an unusually low salary; the quality of service will likely be commensurate with his fee.


Also rejected is to bring a physician from afar who will work for less; again, since his reputation is not on the line he will not exert himself. Another explanation is that we are concerned that the unknown physician is unqualified, an explanation which is echoed in the "quality workers" aspect of the efficiency wage. (1)


My experience is that many employers who pride themselves on finding workers willing to work for starvation wages are penny wise and pound foolish. If they get poor workers they have to fire them, and when they get qualified workers they jump to better jobs just as they begin to be productive. While each workplace is different, I think that many employers would find that providing good conditions is an excellent cost-cutting measure.


SOURCES: (1) Bava Kamma 85a; commentaries on Maimonides' Code, Chovel uMazik 2:18

Every weekday JewishWorldReview.com publishes inspiring articles. Sign up for our daily update. It's free. Just click here.


JWR contributor Rabbi Dr. Asher Meir, formerly of the Council of Economic Advisers in the Reagan administration, is Research Director of the Business Ethics Center of Jerusalem, Jerusalem College of Technology. To comment or pose a question, please click here.

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Previously:

Decent Working Conditions, Part III: Generosity
Decent Working Conditions, Part II: Dignified treatment
Decent Working Conditions, Part 1: Equitable Treatment
Stand up for elders' rights
Garage sale gem
By taking my relative in, am I helping or making the situation worse?
Public Service or Public Relations?
Do professionals need to strive for complete objectivity?
Does future reward make ethical behavior selfish?
The whole truth — Even in the marketplace?
Judaism and the afterlife: Reincarnation, heaven and hell
The Jewish belief in resurrection of the dead affects how will live in the here and now
Ethical guidelines on what to say and what's proper to keep to yourself
Is it wrong to get credit for something you didn't do?
Ethics and sportsmanship
The ethics of forwarding email
Must a supplier honor a discount offered by a rogue sales representative?
Should I boycott my daughter's fashion show?
Should you respond to all those annoying email pop-up requests?
Do I have to reimburse someone who tried to do me a favor?
Seeking credit card debt settlement
Can I threaten to spread the word about someone who cheated me?
How can the terminally ill tap into their life insurance?
Is there value in an unhappy marriage?
Where does the Almighty fit into your corporation's mission statement?
Does an expert witness have to be impartial?
Should I give recognition to a modest man who did a great deed?
In representing my firm, can I tell a white lie?
Defrauding insurance to save a life
Can top level management unilaterally give away money to corporate dollars to charity?
Loans to Family Members
How much worker supervision is too much?
Should I turn in a colleague for inappropriate acts?
Priority in charitable giving
Trolls and ogres
How many hours of work is too many?
Can I promote my product by having it unobtrusively written into a story?
He's not heavy he's my brother
All's fair in war?, II
All's fair in war?
Girth vs. worth
Is it proper to tax bequests?
Ethics of Being Overweight
Penalized for working swiftly
When is it a bluff?
'Rate and switch'
My paycheck is late!
Should schools cater to an elite?
All's fair in love?
Comfort and Competition
Do I need the caller's permission to put a call on the speakerphone?
Overtime for lost time
Is it unethical to play suppliers against each other to get the lowest bid possible?
Do family members have precedence in charity allotments?
What the world of business can teach us about our annual process of repentance and renewal
Are religious leaders subject to criticism?
Vindictive Vendor: How can I punish an abusive competitor?
Blogging Ethics: Is the blogger responsible for defamatory posts?







© 2005, The Jewish Ethicist is produced by the JCT Center for Business Ethics