Thursday, June 3, 2010

Walmart to Offer College Education to Employees

Walmart is going to begin offering discount and free classes to their employees. Walmart will likely be a recurring theme on this website. I love walmart and really dislike it when people disparage it for no \ reason, other than their personal feelings of superiority and blatant classism.

Walmart does right by their employees in a great deal of the circumstances and this shows the real reason any firm provides services for their employees, the corporation's benefit. If the corporation can benefit from improving their staff, they will do it. Adam Smith discusses the invisible hand where we each act in our own best interest but the coordination of our efforts lead to a better result for others, although that was never our intention.

Here, the company is providing a college education for their employees so they can become more effective managers and employees. There will be more in-house promotions so less need for training, saving the company money in the long run. The employees get a highly discounted education in the process so they win as well. It will be interesting to see how those who are bent on making Walmart the villain, no matter the facts of the situation spin this so Walmart somehow has hurt their employees.

Walmart is doing right by their employees in large part because they have the freedom to create interesting solutions to promote, retain and hire employees. Ford., GM and the like are stuck in arrangements with pushy unions that force the union's will on both the employee and employer alike. The company is not allowed to create a unique solution because it would not be in the thousands of page contract the company and employees are forced to sign. When the market place is not affected by third party coercion, both sides generally win. The quicker people can get a handle on that, the better off we will all be.

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