Better Pay for Better Profits

Sep 2013
45,599
36,681
On a hill
#1
JUL 28, 2015 By Steven Yoder

Among the counterintuitive gems economists have excavated in recent years is this curious insight: When the economy is humming along and unemployment is low, the U.S. death rate rises. Many in the field have tried to fathom why. And now, UC Davis Graduate School of Management interim dean Ann Huff Stevens and three of her colleagues think they know. (They published their findings in a paper released last May.)

Most of the additional deaths that occur in economic good times happen among older people living in nursing homes, Stevens and company found. It’s because nursing homes can’t retain low-wage staff when unemployment rates are low. Certified nursing aides make as little as $9 an hour, and the work is both physically and emotionally grueling. Taking another job — even one that doesn’t pay more — is often a step up.

So as turnover rises in these homes, the ratio of patients to staff rises. Infections don’t get the attention they need. New workers make mistakes in administering medications. And more patients die.

High turnover drags down profits in any business, but in nursing homes it can kill people. Recent state court cases make that clear. Rosewood Post-Acute Rehab, a privately run home in Carmichael, was hit with several lawsuits over the years because of quality-of-care problems related to inadequate staffing. In 2013, the state fined Rosewood $100,000 after a patient was given a lethal overdose of a blood thinner, according to a New York Times report. In February, Rosewood’s parent company filed for bankruptcy to escape potentially catastrophic legal verdicts. That’s the second time in two years a California nursing-home chain has liquidated to avoid lawsuits related to inadequate staffing.

…But a number of companies in thin-margin industries are proving that they don’t have to compete by treating staff like cheap, disposable cogs. Companies that do the opposite — by strengthening their operations and training and motivating employees with better pay, decent benefits and predictable schedules — are out-competing their rivals.

Better Pay for Better Profits | Comstock's magazine
 
Dec 2013
3,449
2,400
Switzerland
#4
The hinge between low wages and a higher mortality rate in nursing homes lies on a background of lack of training, and lack of really qualified workers. So the people who accept US$ 9/an hour have anyway a life led by necessity with about no margin to build at work any kind of long lasting motivations. They are like a piece of cork floating on the waves. So,if they have no choice than to keep this type of job, you can threaten them with loosing it, but otherwise.....?!? And anyway the debate is also somewhere else. If you pay so little people, that anyway they need to be subsidized through social benefits to survive, it leads anyway to maintain and to make last an unhealthy situation with no positive outcome possible. And the day the system collapses when even the society cannot afford to pay US$ 9/an hour you are in trouble and either you are able to restructure the whole organization giving up the recourse to cheap labor or you are heading to a revolution. But for that you need to have a vision and the steps to change things take time to be implemented. It can be education, technical progress through R&D etc.... but to keep alive something unbalanced is probably more costly than just investing in new solutions. You need here also to be global in the approach and it is probably not a surprise if words like global or globalization also are for many the enemy to befought... If you want things to remain the same, it is obvious that you will never make a deep reflexion analysing how the society or the economy work together.
 
Likes: 2 people

Babba

Former Staff
Jul 2007
76,453
67,435
So. Md.
#5
Lol

There is no causation here. I would be embarrassed to attach my name to that paper.
Why is it that when it comes to CEOs companies must offer outrageous salaries and benefits in order to retain the best and the brightest, but when it comes to the average worker the same isn't true? :think: And wouldn't you think our senior citizens deserve better? Obviously, we don't value them.
 
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Likes: 1 person
Sep 2013
45,599
36,681
On a hill
#6
Why is it that when it comes to CEOs companies must offer outrageous salaries and benefits in order to retain the best and the brightest, but when it comes to the average worker the same isn't true? :think: And wouldn't you think our senior citizens desire better? Obviously, we don't value them.
For the average worker, low wages, the theory goes, inspire him to work harder.
 
Likes: 1 person
Jan 2014
16,549
6,359
south
#7
For the average worker, low wages, the theory goes, inspire him to work harder.
the solution will not be found until there are people who complain loudly enough. the solution must be a multi-faceted, all encompassing change in the country and it's goals. that starts with citizens.
 
Likes: 3 people
Mar 2012
58,026
39,582
New Hampshire
#9
the solution will not be found until there are people who complain loudly enough. the solution must be a multi-faceted, all encompassing change in the country and it's goals. that starts with citizens.
I agree but the problem we continually see via history is that it takes all generations to come together for that encompassing change. That is hard to do and rarely happens. Its why we change so slowly. Each generation seems to have its youth fighting out in the streets for change but normally its met by the more pragmatic older generations who "ride out change." They are willing to be patient and let it go through the system of change. Sometimes the change happens and sometimes it doesn't. We rarely seem to get everyone on board all at once for needed change. So we don't get it.
 
Apr 2012
60,306
45,469
Englewood,Ohio
#10
For the average worker, low wages, the theory goes, inspire him to work harder.
And change jobs as soon as they can for better wages and benefits.

The idea of keeping them on the Plantation only works when they can find nothing better. In other words those companies are penny wise and Lb. foolish. It costs much more to retrain new people all the time.
 
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