Monday, April 11, 2011

Do people matter?

This piece in the LATimes details the troubles at Ikea's only North American manufacturing facility.

If you want to understand our current workforce development system, understand that this plant has since day one complained that they can't find the workforce they need.  They claim their needs are few - people who can pass a drug test and have a great work ethic.

The first question to any company that complains about their workforce, and says they just need people who can read, write, work in teams, have concepts of quality and a good work ethic, should be - how much do you pay?

Ikea in Sweden starts their employees at $19 an hour, with benefits, and 5 weeks vacation.  If they offered that package in their facility in the U.S., I guarantee you they would get the very best and brightest of manufacturing employee's within a 300 mile radius.  But they pay $8 an hour, with 4 days of vacation outside of 8 holidays in the United States.   And expect the education and workforce system, and the federal/state/local dollars via taxpayers for the K-12 system, the WIB, and Community College, to provide them a cheap, docile labor force that's content earning far less than a living wage.

Ultimately, this will be theme of this blog - If people really matter to your business, if talent matters, then good companies and communities will pay and value them. 

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