Your Wrong, Mr. Cuban

Entrepreneur and Dallas Mavericks owner Mark Cuban thinks we should be working for free.

I disagree.

While working for free in the form of an internship is great for a high school or college student who simply trying to start to build their resume and figure out what their career should be, it’s not so great for the rest of us.

The problem that Mr. Cuban and his fellow business owners around the country fail to realize is that by offering a lower than reasonable wage or only unpaid internships, they are hurting not just themselves, but the entire country.

When an employee is not only paid well, but treated well, they are likely to not only put in the extra effort, but they are less likely to find another job should the opportunity come their way.  When we are paid well, we spend more money. Not just on the basics, but also on fun activities, such as going to a Mavericks game.  The last time I checked, going to a basketball game is not a basic expense.

I’m not an economist, but I know enough about how the economy works.

Let’s go back to the example of going to a Maverick’s game. There is the cost of the ticket or tickets, the cost of any foods or beverage consumed while watching the game, the cost of purchasing a jersey or other memorabilia and the cost of transportation to get to the stadium.  Every time we make a purchase in regards to this game, not only does Mr. Cuban and the government get a cut, but this creates jobs. Jobs which stimulate the economy and allow us to be a little freer with our spending.

Kip Tindell, CEO of the Container Store, has the right idea. He pays his employees twice as high as the average retail worker. This generates higher productivity, which generates higher sales, which in turn generates new jobs and a free flow of extra income.

Your wrong Mr. Cuban. The sooner you and the rest of the CEO’s of this country realize it, the better off we will all be.

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I Think He is Onto Something

It was reported last week, that employees working at The Container Store have an average annual salary of $50,000 a year.

The average annual salary of an employee working in retail is $25,000.

I think Kip Tindell, CEO of The Container Store is onto something.

While money is only one factor employee satisfaction, being rewarded for hard work verbally and financially pays off for both the employee and the employer.

An employee who feels appreciated and respected by his or her employer will work harder and stay in the position longer. This creates less turnover and decreases the amount of time and money that the employer will have to spend on interviewing and training new employees.

Maybe if we had more CEO’s like Kip Tindell, our economy would be in a better place than it is now.