Skewing Young
Millennials are now the largest generation in the work force and they are largely underpaid. That says a lot.
Hiring younger, less experienced, workers to replace more experienced, more expensive, workers is nothing new. It’s a business decision that in a lot of cases makes the most sense. The numbers will tell if accomplishing nearly as much with a much lower salary will improve the bottom line. And, of course, the less expensive employee may improve to the point where they are accomplishing more and still at a lower salary. Re-setting the salary bar at a lower level can be very beneficial.
The difference now is, it’s being done a lot more. That has kept wage growth in check for quite some time, and may have slowed the productivity of businesses and entire industries. At some point, things will balance out. Millennials need to be productive and they need to earn more.
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