Many low-wage jobs are considered bad jobs because they often have low pay, uncertain schedules, and lack career paths. According to Zeynep Ton, before the pandemic, 53 million Americans had low-wage jobs with a median pay of less than $20,000 a year. These jobs also tend to have schedules that change frequently, making it difficult for workers to plan their lives.
Zeynep Ton believes that the trade-off between good pay and low prices is a false trade-off because companies that invest in their workers often see higher productivity, better service, and increased customer satisfaction. Companies like Costco have shown that they can offer low prices, make a profit, and provide their workers with good jobs.
Zeynep Ton uses the term 'frontline workers' because these workers are at the forefront of delivering services or producing goods. They are the ones who interact with customers daily and are crucial to the success of the company. Using 'frontline workers' emphasizes their importance and value, rather than framing them as being at the bottom of the organization.
Empowering frontline workers is important because it enables them to make decisions that improve customer service and operational efficiency. Companies like Costco and Toyota have shown that when frontline workers are empowered, they can identify and implement improvements that create a significant gap between them and their competitors. Empowerment also increases job satisfaction and reduces turnover.
Zeynep Ton advocates for both government and business action because while government policies like higher minimum wages and better health care can provide a safety net, they do not necessarily create meaningful and dignified jobs. Companies need to design jobs that provide a sense of purpose and achievement. Higher pay and better conditions can benefit both the company and the workers, and companies need to demonstrate that these investments are beneficial.
Zeynep Ton believes that personal relationships across levels of the company are important because they help leaders understand the challenges and needs of frontline workers. Leaders who spend time in the front lines, like Jim Sinigal at Costco, gain insights that surveys and reports cannot provide. This direct interaction helps create better policies and work environments.
Zeynep Ton believes that low-wage work (in childcare, customer service, assembly lines and other essential industries) is front-line work — and that pay should be adjusted accordingly. She makes the case that fair and competitive compensation for front-line workers is a better business model, with a nearly endless list of benefits for people and society at large. Listen in to learn how higher pay leads to higher productivity, better services, and happier people everywhere.