Category: Zeynep Ton

It’s time to rethink wages

Posted by MIT Sloan Executive Education - 3 months and 28 days ago

For the last year or so, there’s been a significant amount of news coverage around the wages paid to low-income earners, such as those working at fast food outlets and in retail stores. There have been public protests, calls for boycotts, and legislation to raise the minimum wage in some states.

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Happier employees sell more fries

Posted by MIT Sloan Executive Education - 1 year and 1 month and 26 days ago

The signs held by recent striking fast food employees say, “We are worth more.” They are, in fact, right. Retail employees are worth more, and paying them more can result in higher profits. Those retailers who doubt this should take a close look at Costco, Trader Joe’s, and QuikTrip Corporation (a convenience store chain). Those firms, according to Zeynep Ton, Adjunct Associate Professor of Operations Management at MIT’s Sloan School of Management, pay their employees well—and it shows in the firms’ profits. 

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Cutting staff is not a good operations strategy for retail

Posted by MIT Sloan Executive Education - 1 year and 5 months and 14 days ago

Retailers often resort to making HR changes in order to lower costs. They simply cut staff, which is only a temporary fix. As Zeynep Ton, Adjunct Associate Professor of Operations Management at MIT’s Sloan School of Management, commented to ABC’s “Good Morning America,” “retailers who cut staff to cut costs are succumbing to a vicious cycle, where the staff reductions result in lower customer satisfaction,” which then negates the financial gains from the initial staff cuts. 

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