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February 13, 2012
Binyamin Rose: Back to the Bunker: How a life-risking act by a Christian family during the Holocaust saved a family and built a thriving community a world away
Menachem Wecker: Business Schools Teach Real Estate Despite Troubled Housing Market
February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
Jan. 8, 2006
/ 18 Teves, 5767
Decent Working Conditions, Final: Motivation
By
Rabbi Dr. Asher Meir
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
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