Our attention will swing to the bottom of the value stick. We will meet companies that gain a competitive advantage by decreasing the willingness to sell, WTS of their employees and their suppliers. In competition for talent, firms pursue two approaches to gain leverage: offer more generous compensation or make work more attractive.
While the two strategies seem similar at first—they both create greater employee engagement and satisfaction—they have vastly different consequences. Increases in pay shift value from the company to its employees; there is no value creation, only redistribution. By contrast, more attractive working conditions create more value.
