Answer to Question #97647 in Macroeconomics for tugce

Question

Assume that manager of a restaurant told you that she is considering to send her workers to a
training program to teach them some skills, which will make them more productive. She said that however she is afraid that after they participate in the training program, her workers might demand higher wages or they might just quit and find another employer, so she might not get any additional revenue as an employer even though she will have paid the costs of the education her workers get. She asks you whether she can find a way to keep at least part of that additional revenue as profits. What will be your answer?

Answer 1

   To retain at least part of the additional profit, the employer should let the workers know the organization`s vision and mission that way the workers will gain focus in their work. It is also good for the employer to motivate workers by increasing the wages by some amount that does not interfere with employer profit. By doing this the employer will increase the workers satisfaction because the skills gained will be well paid off.