Throughout nearly every industry this year and even stemming back the last two years,
Today’s blog is by Margaret Stewart, Director of HR, and Administration at SafeSourcing Inc.
Throughout nearly every industry this year and even stemming back the last two years, we have seen prices rise. Much of these cost increases have been attributed to inflation and the rising cost of goods. However, with nearly every good being more expensive, how are companies pulling in record profits? Does the extra money paid at the store works its way up the line through the supply chain and eventually settle somewhere? Based on the profits a few people have made over the last two years, most profits have worked their way up to the top and into the hands of only a select few (Bezos, Musk, etc.).
There are some companies that do not fit that model, thankfully. One such company, Gravity Payments, has been among the few outspoken companies criticizing other companies for lack of pay and wealth distribution. You may recall in 2015, Gravity Payments founder Dan Price decided to forfeit much of his own salary and raised everyone else’s pay up to a minimum of $70k per year. That move put a spotlight on the company and has helped garner positive media attention and associated sales and has also improved employee retention and productivity.
In stark contrast, companies like Amazon who have been forced to pay more for their hourly employees and are currently undermining and fighting unionization attempts, has seem huge corporate profits for the few top people and has gained a vast amount of negative press and is often thought of as a terrible company and workplace. Amazon, when faced with rising costs of employment, however, did not rise to the challenge of cutting CEO pay to pay for workers. It instead raised prices for the consumers. Even Dan Price has said that even if you are giving your employees a 5% raise every year, those employees are ultimately receiving a pay cut due to inflation and the higher costs of goods.
While the costs of labor are rising, companies must work hard to keep up – not only with the rising cost of their own internal labor, but also that of the products and services they use. SafeSourcing can help your organization find the vendors that fit the needs of what you are looking for and help offset rising expenses.
For more information on how SafeSourcing can help your organization or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.