Here is a painful truth that I would venture that 95%+ of people don't know. In fact when I learned it, removing this small block of knowledge from my head toppled an entire ideological castle I had lived in until that point.
Low wage labor is not very valuable at all, and has very low margins on it. The gap between "profitable worker" and "unprofitable worker" is the absolute smallest at the bottom. These workers keep almost all value they create and are never in a position to generate massive value. They are perpetually right on the threshold of being unprofitable to employ.
So the problem then becomes "How do you keep a worker above that profitability threshold when they are barely above it?". You can have kludgey borderline inhumane approaches like this, or maybe try to use perks as coercion to hit targets, but not matter what it's a very difficult problem to solve.
Everyone jumps to "Pay them more" but almost everyone is unaware (and certainly unwilling) that that would necessitate cutting money from their checks to buffer the profitability threshold of these bottom tier workers.
Low wage labor is not very valuable at all, and has very low margins on it. The gap between "profitable worker" and "unprofitable worker" is the absolute smallest at the bottom. These workers keep almost all value they create and are never in a position to generate massive value. They are perpetually right on the threshold of being unprofitable to employ.
So the problem then becomes "How do you keep a worker above that profitability threshold when they are barely above it?". You can have kludgey borderline inhumane approaches like this, or maybe try to use perks as coercion to hit targets, but not matter what it's a very difficult problem to solve.
Everyone jumps to "Pay them more" but almost everyone is unaware (and certainly unwilling) that that would necessitate cutting money from their checks to buffer the profitability threshold of these bottom tier workers.