The High Cost of Low Wages

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Labor

by Wayne F. Cascio

From the Magazine (December 2006)

Summary.   

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Wal-Mart’s legendary obsession with cost containment shows up in countless ways, including aggressive control of employee benefits and wages. Managing labor costs isn’t a crazy idea, of course. But stingy pay and benefits don’t necessarily translate into lower costs in the long run.

A version of this article appeared in the December 2006 issue of Harvard Business Review.

Read more on Labor or related topics Costing, Compensation and benefits and Competitive strategy