Answer
Yes, an inherent conflict does exist, so the wise restaurateur takes the long view to recruit and develop quality employees – and then retain them with a living wage. The cynic sees the conflict this way: “What is the very least amount I can pay to get the very best people to work for me?” This shortsighted owner may save a few pennies in wages, but loses many more dollars in recurring recruitment and training costs when skilled employees leave again and again for higher compensation elsewhere. The most profitable businesses find ways to take care of their employees, and are then rewarded when the employees take care of the business.
Work Step by Step
The challenge of providing a living wage will continue to be with us for the foreseeable future, which is why the business owner needs to align the business goals with all stakeholders, especially employees and customers. If the business is going to be sustainable (a requirement if the jobs are going to be sustainable), the product has to be priced right for the market. This means that certain jobs will pay only x, and no more. If that is not a ‘living wage’ for some, someone else must be recruited for whom the x amount is a bona fide incentive. This person may need additional training because he or she is younger and/or unskilled. The wise owner is sensitive to what compensation will be sufficient to attract – and retain – the affordable employee with the desired profile.
