The High Cost of Neglecting Low-Wage Workers

Despite all their efforts since the summer of 2021 to bring frontline workers back into the fold, companies are struggling to rehire and return operations to a prepandemic normal. As a result they have failed to deliver products and services, lost revenue, and disappointed their customers. Supply chains remain snarled, with warehouse and delivery operations woefully understaffed. Grocery stores and pharmacies are unable to keep their shelves stocked. Restaurants can’t find enough cooks, cleaners, and waiters. Hotel chains can’t book to their full capacity, because they don’t have enough housekeeping staff. Airlines have been forced to ground hundreds of flights.

Many companies blame outside factors for the trouble they’ve been having in finding and retaining frontline workers: the pandemic, the government’s stimulus checks, the intrinsic nature of low-wage work. The authors argue that in fact the real problem lies in six big mistakes companies themselves have long been making, in such basic areas as hiring, career development, and mentoring. They offer some practical suggestions for how leaders can do better, for their workers and their organizations.

April 2023

Opinion: “Many companies blame outside factors for the trouble they’ve been having in finding and retaining frontline workers. The pandemic, the government’s stimulus checks, the intrinsic nature of low-wage work. The authors argue that in fact the real problem lies in six big mistakes companies themselves have long been making, in such basic areas as hiring, career development, and mentoring. They offer some practical suggestions for how leaders can do better, for their workers and their organizations.”

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