The Gap's Wage Hike and Managing Low-Skill Employees

Business Insider tells us that Gap's Minimum Wage Hike Is Brilliant:

While the move could reduce profits in the short term, it's actually a brilliant business move, according to a note by retail analyst Dorothy Lakner at Topeka Capital Markets...Gap's higher wages will result in better customer service—and a happy clientele. 

I don't know about "brilliant." I suspect that The Gap is just trying to gain a little publicity by accepting the inevitable earlier than everybody else. It definitely makes them look good.

Higher wages for low-skill work isn't a bad idea, though. The problem with minimum-wage jobs is that no one involved places any value on the position, employer or employee. A couple of extra dollars on the paycheck--as long as it's more than other jobs in the area--gives employers leverage and employees incentive to fulfill expectations. I imagine there are a lot of PacSun employees talking about putting in applications at The Gap right now.

In my former restaurant life, the opposite attitude used to drive me crazy. When management doesn't take care that their servers are making money, good servers go elsewhere. Bad service drives down business permanently--with so many other options, customers are less willing to give second chances.

Above-average wages is a good management technique and tool, but "brilliant?" Well, that's just biz-news hyperbole.