Posts tagged with: salary

“The twin tracks of work and wage do not meet, and cannot be scientifically related. They are bridged by morality, not by mathematics.” -Lester DeKoster

executiveLow-wage workers continue to picket and protest around the country, demanding an increased minimum wage, improved access to benefits, and better working conditions. The political rhetoric has followed accordingly, with Bernie Sanders calling for an increase in the minimum wage to $15 per hour, and Hillary Clinton arguing for $12 (due to differing magic potions, no doubt). Simultaneously, widespread angst over “excessive” executive compensation continues to fester.

But alas, prices are not play things, and we do society no favors by trying to distort market signals according to our own arbitrary whims (whether $12, $15, $100, or otherwise). Given the history and trajectory of the American economy, we ought not be stuck in the mire of such minimum-mindedness, seeking to control and micro-manage our way to peace and prosperity through top-down mechanistic means. The path to prosperity is one of creation and contribution, planted with seeds of service and opportunity, where new wealth is a natural byproduct of access to the pond.

Yet throughout all this, “market signals” are simply signals, the discernment of which requires human conscience before and after and throughout. When we think about the intersection of work and wages, “listening to the market” is not where it stops, as critics of the free market wrongly assume. The baseline of actual prices in a complex economy is where things begin, and the Christian wage-setter must be careful and attentive to how things ought to proceed.

In Work: The Meaning of Your Life, Lester DeKoster explores these “twin tracks” of work and wage, noting that the proper bridge will not be built by arbitrary government edict, but by the art of “executive stewardship,” driven by God-given responsibility and God-directed conscience. “Work and wage draw together at the point where conscience functions,” he writes, “that is to say, work and wage tracks coalesce in persons making executive decisions.” When we inhibit the freedom of the human conscience, an inhibition of the economic order is sure to follow.

DeKoster devotes an entire chapter to this topic, an excerpt of which is available at the Oikonomia blog. Those who set wages have an “awesome obligation,” DeKoster writes, and their conscience must balance a host of factors, all pushing toward a variety of goals, including (1) the best product, (2) the best working conditions, (3) the best wage for everyone involved, and (4) “reflecting the best efforts at every job, to be sold at the lowest price compatible with the requirements.” In balancing all of this, the executive also heeds transcendent signals, whether through ethics or spiritual discernment. (more…)

raise-minimum-wagejpg“I’m tired all the time.” That’s the lament of one of the working mothers in the video below (from The Guardian), as she describes her life working minimum wage jobs. She and the other women featured are all fighting for an increase in pay to $15 per hour (like Seattle’s recent mandate.)

I feel for them. I can’t imagine trying to raise a family on minimum wage salaries. But I have several issues with what I see in this video. (more…)

givingmoney“Do economic incentives help or hinder ‘business as mission’ (BAM) practitioners?” In a forthcoming study, Dr. Steven Rundle of Biola University explores the question through empirical research.

Unsatisfied with the evidence thus far, consisting mostly of case studies and anecdotes, Rundle conducted an anonymous survey of 119 “business as mission” practitioners, focusing on a variety of factors, including (1) “the source of their salary (does it come from the revenues of the business or from donors?),” and (2) “the outcomes of the business in terms of the four ‘bottom lines’ of economic, social, environmental and spiritual impact.”

The reason for focusing on such areas? “Many people in the ministry/missions world believe that donor support helps ensure that practitioners stay focused on the ministry goals.”

Rundle summarizes his findings as follows:

This study essentially found the exact opposite. It found that practitioners who are fully supported by the business tend to out-perform – sometimes significantly – donor-supported BAM practitioners, and are no less fruitful in terms of spiritual impact. This finding holds up even after controlling for things like geography, firm size, and firm type.

…. The moral of the story is that economic incentives matter. Contrary to the mission community’s concern that self-support will take one’s attention away from the ministry goals, the truth is that only by creating a successful business can a practitioner hope to have a meaningful and holistic impact on a community. (more…)