Are minimum wages the cause of poor customer service in USA?

from JoeUser Forums
With apologies to thatoneguyinslc for possibly taking his reply to my thread slamming Best Buy for idiotic practices, I really wanted to expand upon something that was brought up in this reply:

"In the end, you can thank your rightie legislator buddies for keeping the minimum wages down for their corporate donors. People are more likely to be helpful when they make more than seven bucks an hour."



On that surface that reply may make a lot of sense. Low wages = (supposedly) low motivation for employees, and because of that, we -- as customers -- the citizens of the USA are getting bad service when we shop and go out to restaurants and such.

But, is that really the case?

In the case of the business I was complaining about, Best Buy, and many others I could also complain about in the Washington, D.C. metro area, I know for a fact that the wages that the employees are paid are more than "minimum wage". The federal minimum wage is currently stuck at $5.15. Many businesses in the D.C. area can't even get a job applicant to respond if they aren't paying $7 - $9 an hour. While the unemployment rate isn't that much better than the rest of the country, the numbers of people interested in taking jobs that don't leave spending money in their pockets (after taxes, minimum wage jobs certainly don't leave much money in the hand of the employee) are just not that high.

Employers routinely tout higher wages because the local economy has forced them to raise their offers to meet the demands of the supplies they need (labor).

So, in the case I discussed in the original article, I'm facing someone that is likely making that $7 - $9 range per hour, which is better than the individual would get from many other employers (or at least other employers in other areas), and yet I still get to suffer the general poor attitude of the employees that are supposed to be providing service to me (and everyone else).

Would offering these employees another $2 - $20 a hour really provide them more motivation to help customers, or would we simply be over-paying even more for poor service?

Before you shrug off my thoughts here, let me point you to some of the following information:

Scroll down at this link and read the section referenced in the bold type that follows: All Agree — Money Not Most Important Motivator
Contrary to common belief, financial gain is not the primary motivator for entrepreneurs of both genders, according to a new study by Cheskin Research on how men and women run their businesses.


There's an interesting discussion on the topic of motivators here:

Salary is a Fluid Demand
It is widely acknowledged that monetary compensation is not the sole motivator for most prospective employees. However, the World of Work begins to quantify the relative importance of money versus other factors.

Salary is certainly a significant motivator:
  • 23% of respondents would switch to an equivalent job at a new employer for a 10-19% salary increase;
  • 34% would switch for a 20-29% increase.

However, salary becomes a less compelling factor as the degree of uncertainty about the prospective job increases.

In fact, 29% of the respondents said they would not make a move at all if they felt some uncertainty. In addition,
  • only 11% would move for a 10-19% salary increase;
  • and only 21% would move for a 20-29% increase.



More here:
Compensating the Sales Force
Five types of salesperson behavior patterns
  1. Some are "Creatures of habit." Money does not motivate either way
  2. Some are motivated toward goals regardless of money
  3. Some work just enough to keep their jobs
  4. Some work to balance time between income generation and income consumption
  5. Certain salespeople have an insatiable appetite for money. They will try to earn as much as they can.


Any incentive's value depends on
  1. The personal characteristics of the person to whom it is offered
  2. The degree to which it is needed or wanted
  3. The absolute value of the incentive
  4. How this incentive interacts with other incentives that might be aimed at other needs
  5. The perceived organizational environment



So, I am left to wonder if I'm just finding far too many of the individuals (locally) that would be motivated by more money, or is there a bigger problem where most employees in these jobs are just not putting enough pride in their work efforts, and simply don't care about making sure that customers keep coming back to the establishment that the employees work for?

Is the loss of "work ethic" something that has happened because of something we as customers are not doing, or again, is it more a sign that 'the evil greedy corporations' that most people work for are not doing enough to motivate their employees?

It's hard to imagine that most of these customer service driven businesses are really that out of touch with their customer base. Are we as customers perhaps not doing enough to complain when we receive poor service, and maybe not doing enough to let these businesses know what needs to be fixed so that we'll want to do business with them in the future? If we simply leave a store and never return (or go shop at a competitor consistently instead), does the original business know why we left and won't be back?
politics
2,925 views 8 replies
Reply #1 from JoeUser Forums Top
I think there's a general lack of work ethic because we live in an instant gratification, I'm-entitled-to-it kind of society.

I believe that if you aren't able or willing to do your best at a job, then you should find another job. If you work the window at McDonalds, you can smile and be polite and pretend you're happy to be there...it's called customer service. If you're at Blockbuster and someone asks for help finding a movie, you can take the time to look through your computer files instead of doing a quick one-over of the area where the movie should be with your eyes and then saying, "If it's not out here, we don't have it."

I don't think it matters how much you make...it's about taking pride in yourself.

I worked as a Manager/Photographer for a Portrait Studio and made $7/hr plus commission for a while when I was in college. I spent the extra money on company logo polo shirts. I arrived early and stayed late and worked through lunch. I smiled and was friendly to the people who were never satisfied. If someone had a special request, I did everything I possibly could to accommodate them.

And I'm a lazy person.

It all comes down to pride. I wanted to do a good job and be viewed as excelling at what I did. I wanted to be seen as a professional, even at a $7/hr job.

There doesn't seem to be much of that in the work place. Most people feel that they should earn a high salary and only do the minimum requirements to hold the job. They don't care about how they appear to the customer (which heavily influences consumer's opinions of the company), or about the needs and expectations of the customer.

They just want you to take your burger (don't dare ask for ketchup!) and move to the next window so they can get back to playing grabass with their coworkers.
Reply #2 from JoeUser Forums Top
Bad floor people is just a sign of a bad manager. Any manager worth a damn could walk through any of the areas at best buy and see three or four employees standing around while a half dozen customers are trying to be helped.

The managers aren't making minimum wage, so why do they allow it to happen? Because we are stupid and buy their crap regardless of their service. If they saw their profits dwindling and their overseers started cracking a whip they'd be giving us the 'yes sir' treatment.

So, the best thing to do is go buy your stuff somewhere else. The sad part is we are all too cheap to pay more to make our point. In the end we take crap from people as long as they are cheap.
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Reply #3 from JoeUser Forums Top
Bad floor people is just a sign of a bad manager. Any manager worth a damn could walk through any of the areas at best buy and see three or four employees standing around while a half dozen customers are trying to be helped.


I'll agree with that, too...the problem isn't limited to unmotivated clerks...

The managers aren't making minimum wage, so why do they allow it to happen? Because we are stupid and buy their crap regardless of their service.


Yep.
Reply #4 from JoeUser Forums Top

Bad floor people is just a sign of a bad manager. Any manager worth a damn could walk through any of the areas at best buy and see three or four employees standing around while a half dozen customers are trying to be helped.

Beat me to it!  Yep, I agree 100%.  The employees at Ukrops do not make a lot more than the ones at Food Lion.  But they are a lot more helpful because that is the way management determines it.

Reply #5 from JoeUser Forums Top
One thing I have learned along the way is that across the board raises don't affect morale much at all. Sure, everyone talks about how great the raise was, but very few people actually increase their motivation after the raise kicks in. The only thing I've seen that makes a significant difference (other than personal motivation of employees) is recognition by supervisors of a job well done.

I agree with those who beat me too it here. The attitude of the employees is reflected in the attitude of supervisors. If supervisors either allow employees to slack off, or do nothing but disparage work performance, all the raises in the world aren't going to make that employee any more interested in taking care of the customers' needs. However, there is no end to the motivation gained by a few pats on the back, and a "I really appreciate what you do here" once in awhile. True, there are slackers in every company, and they can be dealt with, but the trick is to not let the good workers become slackers through neglect.

For whoever's reading this, if you have employees....

If you want your employees to make the customers feel wanted, make sure you make the employees feel wanted.
Reply #6 from JoeUser Forums Top
One thing I have learned along the way is that across the board raises don't affect morale much at all. Sure, everyone talks about how great the raise was, but very few people actually increase their motivation after the raise kicks in.


That is so true even outside of the retail world. I work for a small business in the oil and gas industry. A few months ago everyone got "cost of living raise". To the majority of our people it was token at best. An extra $25 a month after taxes doesn’t really affect your bottom line. Was it a moral boost? Yes. But after the owner of the company walked away, all of that warm fuzzy feeling was gone.

We are in the service business. To echo what has already been said, we are successful because we are told how much we are appreciated. We are recognized for what we are. We are the heart and soul of the business. I work for a company that understands that the receptionist is valuable because she is the first point of contact with a new client. They also understand that leading by example is the best way to motivate people. It is a management strategy that, when applied to retail, will not always improve the bottom line but always improves the public’s perception of you.
Reply #7 from JoeUser Forums Top
Terpfan great article!

I think there's a general lack of work ethic because we live in an instant gratification, I'm-entitled-to-it kind of society.


This is true. Too many people these days, especially the younger generation, those who can work, the 15-30 year olds, most times they don't even know what having a work ethic is. And I'm not saying all the 25-30 year olds, just some of them.


#2 by BakerStreet
Wednesday, May 25, 2005


Baker hits the nail on the head with his comments. Most times it is the sign of bad management. If the supervisors and management cared enough, the service would definately be a lot better. And the management usually gets paid a lot more than regular joe or jane sales person. Taking your money elsewhere is always best. Either that or just forget about getting any service at all.





The only thing I've seen that makes a significant difference (other than personal motivation of employees) is recognition by supervisors of a job well done.


Good point Ted.


agree with those who beat me too it here. The attitude of the employees is reflected in the attitude of supervisors. If supervisors either allow employees to slack off, or do nothing but disparage work performance, all the raises in the world aren't going to make that employee any more interested in taking care of the customers' needs. However, there is no end to the motivation gained by a few pats on the back, and a "I really appreciate what you do here" once in awhile. True, there are slackers in every company, and they can be dealt with, but the trick is to not let the good workers become slackers through neglect.

For whoever's reading this, if you have employees....

If you want your employees to make the customers feel wanted, make sure you make the employees feel wanted.


Great points here Ted. Very insightful!


I used to work in retail. It was a high end retail store and I enjoyed it a lot. I even climbed the ranks to management. Why did I like it so much? Because the employers cared about the employees. They motivated us, they made us care about where we worked, what we were selling. There were a lot of pats on the backs. Being in management didn't mean being locked up in an office. It meant being on the sales floor working side by side. The sales staff saw us doing the same things they did, dealing with the same issues. The high commission was a good motivator for them too.


To echo what has already been said, we are successful because we are told how much we are appreciated. We are recognized for what we are. We are the heart and soul of the business. I work for a company that understands that the receptionist is valuable because she is the first point of contact with a new client. They also understand that leading by example is the best way to motivate people. It is a management strategy that, when applied to retail, will not always improve the bottom line but always improves the public’s perception of you.


Ditto on this John. This is how it should be.
Reply #8 from JoeUser Forums Top
I have always operated on the philosophy that the key to making more money is in giving more than you're getting. Better customer service than $5 an hour would merit, and a thoroughness that exceeds your salary. If your current employer doesn't see your worth, future employers will, and you're on your way up the ladder.