There is a growing body of literature that indicates that investing in good jobs is good for the long-term performance of companies and investments. MIT Business School Professor Zeynep Ton argues for a “Good Jobs Strategy,” writing that some of the best and most profitable retailers have succeeded by considering employees an asset in which companies should invest as opposed to a cost which must be minimized.
In her 2012 Harvard Business Review article, Ton argues, “When retailers view labor not as a cost to be minimized but as a driver of sales and profits, they create a virtuous cycle. Investment in employees allows for excellent operational execution, which boosts sales and profits, which allows for a larger labor budget, which results in even more investment in store employees.”
Beyond the health of individual companies, recent reports from organizations like the OECD indicate that good jobs, and other measures that decrease inequality, are good for the economy as a whole, unlike measures which cut jobs for short-term profit maximization.
OECD Secretary-General Angel Gurría has stated recently that “ . . . addressing high and growing inequality is critical to promote strong and sustained growth” and that “[i]mplementing reforms that raise the job opportunities and earnings potential of low-skilled workers, help young people get a step on the job ladder and improve the labour market opportunities of women will unlock growth potential in our economies and ensure that it is shared by all.”