. Why companies aren’t paying more « JO LEE MAGAZINE

Axios – If companies raised pay high enough, then maybe they wouldn’t complain about labor shortages that have forced them to forgo sales. But there seems to be a limit to how much a company is willing to pay, despite what seems like a clear opportunity to maximize the top line.

There are still a record 9.2 million job openings, and employers are getting more desperate to fill jobs. But for many, raising pay further isn’t very palatable.

Increasing wages is essentially a wager that today’s demand will persist and justify higher labor costs in the years to come. And companies don’t want to be in a position to have to reverse that decision.

Read more at Axios.

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