Sunday, 1 February 2015

Shake Shack Shaking Up Wages

The minimum wages paid to fast-food workers have been a focus of intense national debate in the US, where activists and unions have been organising fast-food workers into day long protests agitating for so-called "living wages" of $15 per hour. Earlier this month when Shake Shack filed the company for public stock sale it stated it paid workers workers in New York City a starting salary of $10 per hour - significantly higher than the New York State minimum wage of $8 per hour. The Shake Shake motto is that "When you pay more you can attract a more qualified set of employees, you can reduce your employee turnover cost, and you can encourage them to work harder to keep their jobs. If you have great employees, and if you have great operations that take advantage of them, then you can use your employees to reduce your cost and improve your service and sales."