- Employers looking to retain their workers use a variety of pay and nonpay mechanisms to do so, as well as to account for any losses that ensue.
- Pay-based mechanisms (i.e., pay increases) carry various transaction and adjustment costs, and demonstrate high spillover to a firm’s other branches or plants.
- For multiplant firms, nonpay mechanisms are thus likely more cost-effective due to the relatively decreased spillover displayed by these mechanisms.
The COVID-19 pandemic has driven massive shifts in the global labor market, with repercussions continuing to be felt by both firms and workers today. While employers navigate the demand for an increasingly skilled and agile workforce, employees advocate for greater flexibility and a desire for their companies to proactively reflect their own values. Is it possible to address the needs of employers and employees alike – particularly amid persistent uncertainty about future economic conditions and the market power of workers? And how might workers and their firms most productively contribute to shaping a new and modern labor force?
Our 2023 Frontiers of Business Conference will convene corporate executives, top researchers and policy leaders to share objective, evidence-based solutions for navigating the precarious road toward a labor market equilibrium. Learn more and register today.
